3 US Earnings Growth Stocks Riding The AI Capex Boom

AI related spending now accounts for a large share of US$1.5 trillion in expected S&P 500 capex and corporate earnings are reported up 32%, which helps explain why JPMorgan recently lifted its S&P 500 target to 8,000. That kind of backdrop can quickly reward or punish companies exposed to this surge. This article walks through three US stocks from our earnings growth screener that appear tightly linked to these trends.

The three stocks below are just a starting sample from this earnings growth idea, and the full screen surfaced 36 more US companies with similarly compelling earnings profiles and business stories that are not covered here. If you want to go straight to the source and analyze, compare, and identify your own high conviction ideas, head into the US Corporate Earnings Growth Leaders screener.

Overview: First Solar is a Phoenix based solar technology company that designs and manufactures thin film cadmium telluride photovoltaic modules used in large scale solar power projects for utilities, independent power producers, corporates and other system owners across the US and key international markets.

Operations: First Solar generates essentially all of its revenue, around US$5.4b, from the design, manufacture and sale of cadmium telluride solar modules.

Market Cap: US$26.9b

First Solar sits at the intersection of earnings growth, supportive US policy and the capital spending activity that is influencing the S&P 500. The company focuses on cadmium telluride modules, which are less exposed to new US tariffs on polysilicon products, and it already has a US$18.5b contracted backlog with built in price adjusters linked to technology milestones and tariffs. That provides a degree of visibility into future revenue and margins, while recent Section 232 tariffs and Section 232 related headlines have shifted pricing power in its favor. The main risks include heavy reliance on evolving trade and energy policy and on external borrowing, so changes in those areas could materially affect its earnings profile.

First Solar’s earnings story is tightly linked to tariffs, tax credits and a US$18.5b backlog that many investors may only see at the surface. Get the analysis report for First Solar to see what could change that picture next.

Build your own earnings growth shortlist

First Solar and the other two stocks in this article all surfaced from a single screener, but the real edge comes from shaping filters around what matters most to you. Use our customisable Screener to mix earnings growth, valuation and balance sheet strength, or jump straight into our curated Investing Ideas for ready made starting points.

Overview: NXP Semiconductors is a Netherlands based chip company that supplies microcontrollers, processors, connectivity and security chips, and sensors that sit inside cars, industrial and Internet of Things devices, smartphones, and communication infrastructure across the globe.

Operations: NXP Semiconductors generates its US$13.2b in revenue from a single segment called High Performance Mixed Signal, which bundles its automotive, industrial, IoT, mobile, and communications products.

Market Cap: US$58.9b

NXP Semiconductors sits at the point where the earnings growth story in autos, industrial and edge AI intersects with the broader S&P 500 profit surge. The company has recently reported strong year over year earnings growth, record quarterly revenue around US$3.5b, and improving margins, helped by higher value chips going into electric vehicles, ADAS and connected factories. At the same time, it carries high debt, faces intense China competition and is exploring acquisitions like Ambarella, which could add execution and integration risk just as expectations rise. If you are interested in how a high ROE chip company tied to auto and edge AI fits into the AI heavy capex cycle and why analysts still see upside despite a recent UBS downgrade, this is a story worth unpacking further.

NXP Semiconductors sits at the crossroads of record US$3.5b quarterly revenue, high ROE and intense China competition. Get the 5 key rewards and 1 important warning sign and see whether rising expectations are masking the real swing factor.

Overview: Keysight Technologies provides electronic design and test solutions that help customers design, simulate, validate, and maintain cutting edge communication and electronic systems across wireless, data centers, aerospace and defense, automotive, semiconductor, and general electronics markets worldwide.

Operations: Keysight Technologies generates about US$4.3b of revenue from its Communications Solutions Group and about US$1.8b from its Electronic Industrial Solutions Group.

Market Cap: US$58.3b

Keysight Technologies sits right in the flow of the AI and 5G spending wave, supplying the test gear and software that cloud providers, chipmakers, and defense customers need to make next generation infrastructure work reliably. Earnings growth of 44.6% over the past year, rising net margins and growing software and services revenue show how this is shifting from a pure hardware supplier to a higher quality, recurring model. At the same time, a rich P/E multiple, new US tariffs expected to add up to US$175m of annual costs, high reliance on external borrowing, and recent insider selling mean expectations are high and execution matters. For investors tracking earnings growth leaders, the key question is whether AI fuelled demand and product leadership justify that premium.

Keysight Technologies sits where AI infrastructure, 5G and defense demand meet, yet the real swing factor may be hiding in its earnings mix. Read the analysis report for Keysight Technologies to see what recent shifts could mean in the period ahead.

Seeking Fresh Alternatives Before They Fly

Markets move fast and the next breakout ideas rarely stay under the radar for long. Consider these fresh stock ideas before the momentum becomes crowded.

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.

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