Buy these six semi-final stocks heading into Nvidia’s earnings via Investing.com

As Nvidia’s (NASDAQ: ) highly anticipated earnings report approaches, Northland Capital Markets has provided insight into the semiconductor landscape, particularly as it relates to AI trading.

While the firm remains cautious about the broader semiconductor sector due to potential volatility stemming from Nvidia’s guidance, they identified six stocks that could present buying opportunities.

Northland Capital Markets believes Nvidia is likely to beat consensus expectations, driven by robust demand for its products.

However, the company’s analysts are concerned that the company’s guidance may not be strong enough to sustain its momentum.

“NVDA’s sales slump was a year ago, with revenue up 88%,” they wrote. “Y/Y compositions are getting more and more difficult going forward.”

This caution stems from Nvidia’s ongoing product transition and growing competition in the AI ​​space, which could affect its future performance.

Despite these concerns, Northland recommends looking for buying opportunities in certain semiconductor stocks that could benefit regardless of Nvidia’s near-term outlook. Specifically, they highlight AMBA, AIP, AMD (NASDAQ: ), CEVA, PWR, and PDFS as attractive picks in Nvidia’s earnings report.

These companies are considered poised to benefit from various trends in the semiconductor and AI markets.

The report also highlights the competitive dynamics in the AI ​​sector, particularly between Nvidia and AMD.

“AMD and NVDA are on different commercial paths,” Northland notes, drawing a parallel to the historic rivalry between Microsoft (NASDAQ: ) and Apple (NASDAQ: ). They expect Nvidia’s market share in AI infrastructure to erode over time as alternatives gain ground.

While Nvidia’s earnings could introduce volatility, Northland Capital Markets sees potential in these six semiconductor stocks, making them attractive buys ahead of the report.