Voya Financial (VOYA) Q3 Earnings and Revenues Top Estimates


As everybody knows by now, artificial intelligence (AI) has been Wall Street’s shiny new toy in 2023, with companies speaking on the technology in a snowballing fashion.

And so far, many big-tech names have been in the spotlight regarding the technology, including Microsoft MSFT, Alphabet GOOGL, and NVIDIA NVDA.

And as we can see in the chart below, all three stocks have provided market-beating returns in 2023, outperforming the S&P 500 handily.

Image Source: Zacks Investment Research

But how does each company stack up currently? Let’s take a closer look.

NVIDIA

A big focus point of NVDA’s latest release was its Data Center results, which include its AI operations; Data Center revenue totaled $3.6 billion, growing 11% from the year-ago quarter. There were other strategic highlights within the Data Center segment, including a partnership with Deutsche Bank DB to further the use of AI within financial services.

Keep an eye on NVDA’s upcoming quarterly release expected on May 24th; the Zacks Consensus EPS Estimate of $0.92 indicates a Y/Y pullback of roughly 30%. Our consensus revenue estimate presently stands at $6.5 billion, reflecting a decline of 21% from the year-ago quarter.

Zacks Investment Research
Image Source: Zacks Investment Research

NVDA shares certainly aren’t cheap at the moment, with the current 61.2X forward earnings multiple sitting well above the already steep 52.9X five-year median. Still, investors have had little issue forking up a premium for shares thanks to the long-term outlook of AI.

Zacks Investment Research
Image Source: Zacks Investment Research

Microsoft

In an announcement that surprised some, it was revealed just this week that Microsoft is joining forces with Advanced Micro Devices AMD to fuel its push into AI, jointly developing a new AI processor. And this comes on the heels of MSFT’s significant investment into ChatGPT.

In its latest release, Cloud strength helped drive better-than-expected results, with Intelligent Cloud revenue growing 16% year-over-year to $22.1 billion. Total quarterly revenue totaled $52.8 billion, 4% ahead of expectations and improving 7% from the year-ago period.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares saw significant bullish activity post-earnings, closing 7% higher in the following trading session. This is illustrated by the green arrow in the chart below.

Zacks Investment Research
Image Source: Zacks Investment Research

Alphabet

Alphabet unveiled its new conversational AI service, Bard, powered by its next-generation LaMDA (language model for dialogue applications). The service was launched in response to the snowballing popularity of ChatGPT.

Analysts have recently become bullish on GOOGL’s outlook, with earnings estimates drifting higher across all timeframes over the last several months.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, shares are cheap on a relative basis, with the current 19.4X forward earnings multiple sitting well below the 25.9X five-year median and the Zacks Computer and Technology sector average.

Zacks Investment Research

Image Source: Zacks Investment Research

Bottom Line

With the rapid rise of interest in AI technology, it’s no surprise that several notable technology giants have joined the party.

While the technology is still in the early phases, the long-term potential has investors ecstatic, seeing a massive opportunity to reap some gains.

And so far, the three companies above – Microsoft MSFT, Alphabet GOOGL, and NVIDIA NVDA – are all scurrying to become the leader.

Free Report: Top EV Battery Stocks to Buy Now

Just-released report reveals 5 stocks to profit as millions of EV batteries are made. Elon Musk tweeted that lithium prices have gone to “insane levels,” and they’re likely to keep climbing. As a result, a handful of lithium battery stocks are set to skyrocket. Access this report to discover which battery stocks to buy and which to avoid.

Download free today.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Image and article originally from www.nasdaq.com. Read the original article here.

By Zacks