With the Nvidia (NASDAQ:NVDA) shareholder meeting fast approaching, many analysts are speculating how its internal reporting could impact the broader tech industry. This year’s 2024 meeting will likely highlight much of the roaring success the company has seen since the start of 2023 and could set off other tech stocks as a result. As such, the right stocks to buy in preparation for this short-term boost are likely those with close connections to Nvidia’s business model.
However, investors should keep in mind that speculative purchases before earnings reports and shareholder meetings can result in losses should the news trigger a broader sell signal. That being said, if you’re adamant about trying to time the news with the stock market, here are three companies likely to see a bump from a strong NVDA annual earnings report. This comes as NVDA stock continues to make history in taking its company’s market capitalization to never-before-seen heights.
Microsoft (MSFT)
Depending upon the day, Microsoft (NASDAQ:MSFT) dukes it out with Nvidia for title of the largest by market cap (it currently owns the top spot). The tech giant owes much of its growth to the success of Nvidia’s products. After all, even NVDA’s CEO Jensen Huang has stated the company is fueling the next industrial revolution with its graphics processing units (GPUs). Who better to apply its products to the broader tech industry than Microsoft, which holds an eyewatering 72% of the PC operating system market?
Moreover, the company’s deep interconnection with Nvidia is best exemplified by its Azure data center platforms, which are central to its enterprise-level AI solutions. As a result, Azure has been one of the main drivers of revenue growth for MSFT while keeping it relevant in an increasingly competitive cloud computing space.
Bearing these details in mind, if any of the information in NVDA’s upcoming shareholder meeting is positive regarding the progress Nvidia and Microsoft are making toward AI technology, then MSFT stock could see its value rise.
Hewlett Packard Enterprise (HPE)
One of Nvidia’s smaller partners when it comes to AI data centers, Hewlett Packard Enterprise (NYSE:HPE) could see its share value bump up in the week of a strong Nvidia shareholder report. That’s because Nvidia often highlights up-and-coming projects and improvements to its partnerships in shareholder meetings.
Furthermore, both companies recently announced an AI cloud product partnership aimed at improving HPE’s AI computing offerings. The deal will involve three HPE servers, powered by eight Nvidia H200 NVL Tensor Core GPUs and the DL384 Gen 12 with GH200 NVL2 accelerators. These represent some of the best computing architecture NVDA has to offer while underscoring a conservative approach to the AI boom for HPE.
These technologies could see the release of better software integration at NVDA’s shareholder meeting or just an announcement about market performance. Either way, HPE’s newly founded relationship with the GPU giant could result in investor excitement following the upcoming Nvidia shareholder meeting.
Dell Technologies (DELL)
As I discussed last week, Dell Technologies (NYSE:DELL) has been one of Nvidia’s big customers in recent years. This trend stems from the legacy personal computer maker investing extensively in its data center computing infrastructure. Depending on how the Nvidia shareholder meeting addresses this new partnership, Dell could be among the best stocks to buy for a short-term play.
Furthermore, should Nvidia announce new technologies or projects at the meeting, Dell’s increasingly interlinked perception could get a share value boost from investors bullish on NVDA’s new technologies.
Ultimately, Dell has proven to be a solid pick in the tech industry this year, with a 94% share value gain year-to-date. Thus, it’s likely this performance will continue so long as it sticks closely to Nvidia’s technological prowess. For investors looking to buy stocks before the Nvidia shareholder meeting, DELL could be both a strong short-term and long-term play.
On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
