AI stocks like Apple, Broadcom, and Vertiv Holdings recommended for potential outperformance during rate cuts.

From Nasdaq: 2024-08-23 16:10:14

After key economic meetings and comments from Fed Chair Jerome Powell, the likelihood of a September rate cut has increased, with history showing that strong buyback stocks may outperform during rate-cut cycles. Analysts recommend considering stocks with strong buyback programs and AI exposure, such as Apple, Broadcom, and Vertiv Holdings. Apple’s recent standout financial performance, innovative product lineup, and shareholder-friendly initiatives position it as a leading AI stock. The company’s steady dividend growth, share buyback plan, and strong Q3 earnings results contribute to a positive outlook for future growth and profitability. Meanwhile, Broadcom’s recent stock split, robust earnings results, and optimistic guidance suggest a bright future for investors seeking exposure to essential markets such as AI, cloud, and cybersecurity. Observers anticipate further gains for Broadcom in the coming quarters, with strong analyst recommendations and upside potential indicated by average and high price targets.
Lastly, Vertiv Holdings’ role as a key player in powering AI infrastructure underscores the importance of its cutting-edge liquid cooling solutions in maintaining efficient AI operations. The company’s impressive Q2 results, commitment to maximizing shareholder value through share repurchases and dividends, and solid financial position highlight its strong positioning in the AI sector. With a history of outperforming and strong growth prospects, Vertiv stands out as a top AI stock choice for investors looking to capitalize on the AI trend.



Read more at Nasdaq: 3 AI Stocks Set to Outperform When the Fed Cuts Rates