3 AI Stocks With Earnings Growth Of At Least 26%

The Federal Reserve’s latest rate hike underlines a world where money is no longer cheap and higher borrowing costs can punish fragile balance sheets. That backdrop puts financially sound, earnings focused growers in a different league. Investors who wait risk watching quality opportunities move out of reach. This article highlights three stocks from a US high growth screener that couples projected earnings expansion with balance sheet discipline.

The stocks in the list below are just a starter set from this earnings focused idea. The full screen surfaced 286 more companies with similarly compelling stories that are not covered here. If you want to move fast and focus only on the healthiest high growth candidates, head straight into the Healthy high growth potential screener to identify, compare and analyze the positions that best fit your own criteria.

Broadcom (AVGO)

Broadcom is one of the clearest fits for this Healthy high growth potential screen, with its chip business wired directly into the surge in AI and data center networking demand that underpins the earnings focused theme.

Broadcom is a global digital infrastructure supplier, pairing semiconductor devices with infrastructure software for data centers, cloud and enterprise clients. It generates about US$59.4b from Semiconductor Solutions and US$29.7b from Infrastructure Software, and the stock carries a market value of roughly US$1.7t.

"Broadcom is generating substantial free cash flow, expanding its custom silicon business, strengthening its position in networking, and integrating software assets that further diversify earnings."

The real test for Broadcom’s growth story may come from how one powerful shift in AI related demand filters through to future profitability.

If that AI demand shift is what you care about, the full narrative for Broadcom outlines how Broadcom’s cash generation, risks and valuation story intersect.

Micron Technology (MU)

Micron Technology is a heavyweight in memory and storage, and its data center DRAM and SSD business is the clearest link to this Healthy high growth potential theme.

Micron Technology designs and sells memory and storage hardware used in data centers, PCs, phones, autos and industrial gear. Cloud Memory and Core Data Center units together generate about US$52.5b, and the stock is valued at roughly US$1.1t.

"The central change is HBM. High bandwidth memory is stacked DRAM designed to feed AI accelerators with enough bandwidth to keep them busy."

For investors tracking Micron Technology, the real swing factor may be how one evolving supply and pricing balance shapes future earnings power.

That supply and pricing wildcard is exactly what the full narrative for Micron Technology unpacks, showing how Micron Technology’s HBM ramp could reshape earnings power, risk and upside potential.

Oracle (ORCL)

Oracle is a long-established enterprise software giant that now leans on Oracle Cloud applications like Fusion ERP, HCM, SCM and NetSuite to support recurring subscription revenue, alongside sizeable cloud and software sales of about US$62.8b, plus hardware and services, at a market value near US$446.3b.

Oracle ties into this screener as a mature software heavyweight working to turn a long customer list into higher quality, recurring cloud earnings that analysts expect to keep building.

"The foundation of Oracle’s AI narrative rests on its Gen2 AI infrastructure and the validation it received from the premier generative AI powerhouse, OpenAI. For Oracle, winning this business was more than just a client acquisition; it was a powerful endorsement and validation that its Gen2 AI infrastructure could compete head to head with the largest hyperscalers on both performance and cost-effectiveness."

What happens to Oracle’s next leg of earnings growth depends on how one massive, but still developing, cloud demand pipeline ultimately converts into cash flow.

That cloud pipeline question is exactly what the full narrative for Oracle unpacks, showing how Oracle’s Gen2 AI infrastructure could accelerate or stall the next phase of earnings momentum.

Seeking Alternatives Before Momentum Flies

Fresh ideas move first and slow research often trails the breakout. Scan curated lists while they are still under the radar for now and get in early.

• Spot resilient compounders before they gain broad attention by running the 30 resilient stocks with low risk scores while it still highlights under-the-radar balance sheet strength.
• Track real momentum in automation by scanning the 96 robotics and automation stocks and find companies building the systems that keep factories and warehouses flying.
• Catch early strength in power infrastructure with the 39 power grid technology and infrastructure stocks and focus on businesses positioned to benefit if grid upgrades accelerate.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com