10 AI Stocks That Will Skyrocket

6. NVIDIA Corporation (NASDAQ:NVDA)

Average Upside Potential: 35.6%

Number of Hedge Fund Holders: 223

NVIDIA Corporation (NASDAQ:NVDA) offers graphics and compute and networking solutions. Mark Lipacis, an analyst from Evercore ISI, maintained a “Buy” rating on the company’s stock with the same price objective of $190.00. As per the analyst, the company continues to be a preferred platform for hyperscalers because of its strong ecosystem, and demand for its GPUs has been outstripping supply. Additionally, the advancements in AI, including improved cost efficiencies and higher computational needs for multi-modal models, can fuel the adoption of NVIDIA Corporation (NASDAQ:NVDA)’s technology, aiding its long-term growth thesis. Elsewhere, DBS also maintained a “Buy” rating with a price objective of $160.00.

The build-out of AI infrastructure has been a major tailwind for the company. Cloud service providers, enterprises, and even sovereign states have been fueling demand for AI computing power. This trend can help NVIDIA Corporation (NASDAQ:NVDA) sustain its growth. The accelerated adoption of AI throughout industries, spanning healthcare to finance, can fuel strong demand for the company’s products and services. NVIDIA Corporation (NASDAQ:NVDA)’s dynamic position in the AI ecosystem places it well to improve its share of the growing market.

Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor company specializing in compute and networking systems for accelerated computing and AI. Shares increased 10.6% for the quarter and were up 170.3% in 2024, on strong quarterly results, with record data center revenue, which surpassed $30 billion, driven by demand for its Hopper GPUs, while Gaming and Automotive also beat expectations. Key investor debates include the continued progress on improving the capability of AI models (e.g. scaling laws – see more in the outlook section below), transition from AI training to inference and the potential impact on competitive dynamics, and the pace of adoption of AI across industries. Despite near-term uncertainties, we maintain conviction in NVIDIA’s leadership in accelerated computing, driven by its ability to innovate and adapt to market shifts. With robust margins, a dominant data center presence, and a growing ecosystem across hardware and software, we believe NVIDIA is well positioned to capitalize on the structural growth in AI and high-performance computing.”