Arista Networks and Globalfoundries are set to release their Q1 earnings, prompting investors to evaluate which AI stock is a better buy.
Arista Networks, renowned for its cutting-edge networking solutions, is expected to report $1.75 in EPS and $1.552 billion in revenue. The company recently introduced a cloud-based network identity service powered by AI, showcasing its innovation in the field.
Meanwhile, Globalfoundries, a key player in semiconductor chip manufacturing, is projected to report 23 cents in EPS and $1.523 billion in revenue. The company secured $1.5 billion for expanding chip production capacity in various sectors, reflecting its commitment to growth and adaptability.
In terms of stock performance, Arista Networks has seen a significant rise of over 110% in the past year, with a premium valuation at 42.22 trailing P/E. Globalfoundries, on the other hand, has faced a decline of 16% in the past year and is down 17.71% year-to-date, positioning it as an undervalued MANGO stock in the semiconductor industry.
Looking at forward P/E ratios, Globalfoundries appears to be the more attractive option with a ratio of 23.66 compared to Arista Networks’ 32.28. Analysts also project a 22.62% upside for Globalfoundries’ stock, while Arista Networks shows a 6.69% upside potential.
Considering the current market trends and analysts’ recommendations, Globalfoundries emerges as the preferred AI stock pick at present due to its undervaluation and growth potential in the semiconductor industry. Investors are advised to stay informed and evaluate their investment decisions accordingly.
