
U.S. stocks ended August higher, lifted by AI trade. NVIDIA and four other AI stocks hold top Zacks ratings for September.
NVIDIA's data center revenue surged 117% year over year.
Its new chip, Vera Rubin, is now shipping.
What happened
U.S. markets ended August higher, with the S&P 500 up 2.6% and the Nasdaq up 3.9%. NVIDIA, Super Micro Computer, Semtech, SiTime, and Keysight Technologies were named as top AI momentum picks for September.
Why it matters
These five stocks all carry a Zacks Rank #1 (Strong Buy) and a Momentum Score of A, suggesting they are expected to keep outperforming. NVIDIA's Data Center revenue reached $89 billion in Q2 fiscal 2027, up 117% year over year.
What to watch
NVIDIA's Vera Rubin chip entered production shipments in August 2026, with early demand from major cloud providers. It promises 30 times higher throughput per megawatt and 35 times lower token cost than Grace Blackwell Ultra.
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The August rally was largely attributed to renewed strength in AI-related stocks, after a mixed June and July. The Dow posted its fifth straight monthly gain, while the S&P 500 and Nasdaq recorded their first monthly advance since May, with both hitting all-time highs. This backdrop set the stage for NVIDIA and its peers to be highlighted as strong momentum candidates.
NVIDIA's continued dominance in AI hardware is evident from its latest earnings, with data center revenue surging to $89 billion in Q2 fiscal 2027—a 117% jump year over year. The company's growth is fueled by demand from hyperscalers and AI cloud providers building out AI factories. Its new product, Vera Rubin, began production shipments in August 2026, and the company highlights that it offers substantial efficiency gains, which could further solidify NVIDIA's market position.
For investors, the Zacks Rank #1 and Momentum Score of A on all five stocks suggest a favorable near-term outlook, but it's important to note that past performance does not guarantee future results. The focus on token economics and power efficiency in AI infrastructure is likely to remain a key theme, with NVIDIA positioning itself to capture more revenue per gigawatt as it transitions from Blackwell to Vera Rubin. While the momentum may continue, any changes in AI spending patterns or competitive dynamics could affect these stocks.
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