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Zacks Investment Ideas feature highlights: Vertiv, Nvidia and Palantir

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For Immediate Release

Chicago, IL – January 16, 2025 – Today, Zacks Investment Ideas feature highlights Vertiv (VRT - Free Report) , Nvidia (NVDA - Free Report) and Palantir (PLTR - Free Report) .

3 Key AI Reports to Watch This Earnings Season

The 2024 Q4 earnings season is gearing up to kick into a much higher gear following the release of the big banks’ results.

It looks to be another positive period, underpinned by strong and continued growth from tech. And as expected, all eyes will be on the AI/Data Center players, a trend we’ve become accustomed to over the last several years.

Let’s take a closer look at how expectations stack up for Vertiv, Nvidia and Palantir.

Nvidia Remains AI Leader

Likely the most important release of the earnings cycle yet again, AI-favorite Nvidia is set to reveal its quarterly results in mid-February. Though the stock is a late reporter, we’ll likely see some readthrough from other AI players leading up, such as Advanced Micro Devices.

The stock hasn’t done much in recent months, essentially flat on a three-month basis following an immense run. But both top and bottom line expectations have moved higher over the last several months, with the stock continuing the sport a favorable Zacks Rank #2 (Buy).

The company is expected to see 61% EPS growth on 70% higher sales, expected to be driven by another robust period of Data Center results. Below is a chart illustrating the company’s immense sales growth on a quarterly basis.

Nvidia’s Data Center results have blown away our consensus expectations easily, with the most recent beat totaling a sizable $1.8 billion. It’s more than reasonable to expect another robust period here, with demand for AI-related offerings continuing to remain strong.

Palantir Sees Huge Demand Wave

Palantir has thrust itself into the middle of the AI frenzy following rock-solid quarterly results stemming from strong demand, with shares delivering nearly a +300% gain over the last year.

EPS revisions for the quarter to be reported have been stagnant over recent months, but the top line outlook has brightened nicely, with the $779 million expected up 4% over the same period.

The stock has cooled off so far in 2025, losing roughly 12% and underperforming. Nonetheless, another strong quarterly release could likely perk shares back up and get buyers interested again, with the AI story certainly not going anywhere anytime soon.

Alexander Karp, CEO, after its latest Q3 results, ‘We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down. This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners.’

Vertiv to Continue Outsized Sales Growth

Vertiv provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services.

Scorching-hot demand has aided quarterly results, with Vertiv exceeding the Zacks Consensus EPS estimate by an average of 10% across its last four releases. The company’s top line has expanded nicely amid the frenzy, with VRT posting double-digit percentage year-over-year revenue growth in seven consecutive releases.

A late positive EPS revision for the quarter to be reported recently hit the tape, with the $0.84 per share expected suggesting 50% year-over-year growth. Top line expectations haven’t budged much, with forecasted sales of $25.1 billion 15% higher than the year-ago period and continuing the recent growth streak.

Valuation multiples have expanded amid big growth expectations from investors, but the current 0.9X PEG ratio reflects both value and growth.

Bottom Line

We’ll see the 2024 Q4 earnings cycle kick into a much higher gear following the release of the big banks’ results. And concerning the AI/Data Center frenzy, all three reports from the companies above should be closely monitored by investors.

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NVIDIA Corporation (NVDA) - free report >>

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