Top 3 Profitable AI Buys for November With NVIDIA Leading the Pack

Traditionally, November has been a strong month for the stock market, and artificial intelligence (AI) stocks in particular have been performing very well lately. This is because the AI market size is expected to reach US$1.68 trillion by 2031, at a CAGR of 36.89% from 2025, according to Statista.But savvy investors must choose AI companies that generate solid returns after covering all operating and non-operating expenses. Therefore, it’s smarter to invest in a profitable company rather than one that is losing money. Here, we use accounting ratios to evaluate a company’s profitability. Among various profitability ratios, we pick the most effective and commonly used metric to measure a firm’s bottom-line performance.To that end, NVIDIA Corporation NVDA, Micron Technology, Inc. MU, and Vertiv Holdings Co. VRT have been selected as top profitable AI picks for November due to their high net income ratios.Net Income Ratio Explained SimplyThe net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’s effectiveness in meeting operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate ample revenues and successfully manage all business functions.Screening Parameters Using Research Wizard:The net income ratio is not the only indicator of future winners. So, we have added a few more criteria to arrive at a winning strategy.Zacks Rank less than or equal to #2: Whether the market is good or bad, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.Trailing 12-Month Sales and Net Income Growth Higher than X Industry: Stocks that have witnessed higher-than-industry sales and net income growth in the past 12 months are positioned to perform well.Trailing 12-Month Net Income Ratio Higher than X Industry: A high net income ratio indicates a company’s solid profitability.Percentage Rating Strong Buy greater than 70: This indicates that 70% of the current broker recommendations for the stock are Strong Buy.These few parameters have narrowed the universe of more than 7,685 stocks to only 23.Here are three of the 23 stocks that qualified for the screening:NVIDIANVIDIA is a global computing infrastructure company offering graphics, computing, and networking solutions. NVIDIA has a Zacks Rank #2. NVDA’s 12-month net profit margin is 52.4%.MicronMicron manufactures and sells memory and storage products worldwide. Micron has a Zacks Rank #1. MU’s 12-month net profit margin is 22.9% (read more: Micron or NVIDIA: Which AI Stock Looks Attractive and Worth a Buy?).VertivVertiv designs and produces essential digital infrastructure technologies and lifecycle solutions for data centers, communication networks, and industrial settings worldwide. Vertiv has a Zacks Rank #1. The 12-month net profit margin of VRT is 10.7%.You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Vertiv Holdings Co. (VRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks