10 AI Stocks That Could Go Parabolic According to Financial Media

Page 6 of 6

1.  NVIDIA Corporation (NASDAQ:NVDA

Number of Hedge Fund Holders: 179 

NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Even though the company beat market expectations on earnings per share and revenue for the second fiscal quarter, the shares fell following the report. This was because there were concerns around the production ramp for the latest AI chips called Blackwell and a slowdown in data center growth during the second quarter, raising concerns about valuation and future volatility. This selloff happened despite the fact that the firm outlined $50 billion in share buybacks. However, market experts are forecasting a shift to robotics that could be a future growth driver for the tech giant as the AI boom fades away.

Wall Street analysts expect NVIDIA Corporation (NASDAQ:NVDA) to register parabolic growth in the coming months. Truist recently raised the price target on the stock to $148 from $145 and kept a Buy rating, noting that investors should look through the Blackwell fog and recognize that the company beat revenue and EPS expectations for the quarter and in the outlook, while the results and commentary reinforced leadership in AI as strong and persistent.

While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 13 High Growth Semiconductor Stocks That Are Profitable in 2024 and the 11 Best AI Penny Stocks to Invest in Now.

Page 6 of 6