In this piece, we will take a look at the 10 best growth stocks to buy now according to Ray Dalio.
Ray Dalio is one of the most successful investors in Wall Street’s history. He has invested through his firm Bridgewater Associates, and according to Insider Monkey’s research, Bridgewater had a 13F portfolio worth $19.7 billion as of Q1 2024 end. What’s more, is that we also looked at the top hedge funds on Wall Street as part of our coverage of 23 Best Hedge Funds of All Time and discovered that Bridgewater Associates ranked in the top five due to its $30 billion in gains since inception.
Looking at these, it’s clear that Dalio and his firm must be doing at least something right. Ray Dalio is a macro player who not only loves to look at the broader trends that affect the economy, but he also loves diversification and selling stocks at the right time. This approach differs from several other hedge funds which choose to focus on specific companies or are proponents of buying and holding stocks for the long term. Dalio’s strategy allows his fund to manage a changing economic and investment climate, as part of what is dubbed an All Weather Strategy.
However, despite his success, 2024 has been a mixed year for Bridgewater Associates. The firm, currently headed by CEO Nir Bar Dea, is currently shaking things up as its Pure Alpha fund has lost 4% for the last four years. This fund also had one of its worst years in history in 2023, but the changes do appear to be making their mark. This is because in Q1, the fund posted 16% in returns which were higher than the 4.59% in gains made by global hedge funds.
As for Dalio, even though he has moved forward from directly overseeing Bridgewater’s affairs, the investment guru regularly shares his wisdom with the world. He started 2024 by listing five key forces that will play a dominant theme in the investment environment this year. In a LinkedIn post, the billionaire shared that these forces are those that determine how the economy, the American and global political systems, forces of nature, and humanity’s innovation work.
While these forces are important for 2024, Dalio’s life’s work has focused on studying them over the course of the years and analyzing how they match similar trends in history. This makes his investment approach one of the most unique ones in the industry, and it appears to be yielding results as between 1991 and 2022, Bridgewater’s Pure Alpha fund has delivered 11.4% in average annual returns.
Dalio is also one of the few investors in the world who takes a serious approach to studying history and understanding the implications on the broader investing environment. Ever eager to share his insights, the famed investor gave a talk at Columbia Business School in April. Commenting on the investment approach at Bridgewater, the billionaire shared his values, philosophy, and guiding beacons for the process. He started out by sharing that he began his career by trading commodities because they had low margin requirements which would let him make more money. The stock market crash of 1982, which forced Dalio to borrow $4,000 from his father to pay bills was also critical in formulating his investment approach. As we’ve mentioned above, diversification is a key theme of Dalio’s All Weather Strategy, and the market crash influenced this approach:
And the way I looked at the risk, is I said, it’s like I, I, had a visual image that there’s this jungle there. And if I can cross the jungle without getting killed to the other side I would be okay. But I have to go through that, and then, or I could stay on the safe life side. And not take those risks. And how would I do that? And that was a problem that I had to figure out. And I realized two things I needed to do. I needed to diversify because it’s like my 15 uncorrelated returns stream mantra. I’ve realized that if I can have debts, 15 good uncorrelated return streams that I could reduce my risk by 80% with keeping the same expected returns.
So that was a big thing. And the other thing is I realized that I needed to do it with people who were on the mission who could see what I couldn’t see. I wanted people that we would stress test each other and challenge each other. We all see differently. Each one of you, have what you see is different from the way other people see. And, and when you start to have an appreciation of how people see things differently and you can get through that, that’s a great power. And so, I, it was like going into the jungle with others who were on the same mission with me. And we’d protect each other and so on.
Finally, before we get to Ray Dalio’s top growth stock picks, it’s also important to understand why such stocks are important particularly in today’s investment environment. US economic growth slowed down to 1.6% in Q1 from 2.4% in Q4 2023. At the same time, while the stock market has flourished on the AI front, other sectors have shown that persistently high inflation and tight credit conditions are making their mark. Since the economy is the sum product goods and services produced, firms whose revenue growth outpaces the consumer price index (CPI) inflation of 3.3% for May and the GDP growth are adding more customers to their top line instead of simply matching economic trends. Combining such stocks with the investment principles of the legendary Ray Dalio can help gain a better understanding of some of the market’s top sectors.
With these details in mind, let’s take a look at the top growth stocks that Ray Dalio and Bridgewater Associates have invested in.
Our Methodology
To make our list of Ray Dalio’s top growth stocks, we analyzed Bridgewater Associate’s 13F filings for Q1 2024 and picked out ten stocks with strong fiscal year annual revenue growth among the top 80 stocks.
10. Mondelez International, Inc. (NASDAQ:MDLZ)
Latest Fiscal Year Annual Growth Rate: 14.35%
Bridgewater Associates’ Q1 2024 Investment: $149 million
Mondelez International, Inc. (NASDAQ:MDLZ) is one of the biggest confectionery companies in the world. While this would appear to lend its business a relative sense of stability due to stable demand, the reality has been quite different. Mondelez International, Inc. (NASDAQ:MDLZ) has been battling with high cocoa prices for quite some time now, and these carry the risk of eroding its market share. Cocoa, for those out of the loop, hit a whopping $11,000 per metric ton in April 2024 due to crop disease and industry dynamics in Africa. Big ticket names like Mondelez International, Inc. (NASDAQ:MDLZ) often hedge their commodity raw materials, which allows them to purchase cocoa at pre determined prices. However these contracts have a fixed life, and if Mondelez International, Inc. (NASDAQ:MDLZ) is unable to find creative solutions to the high prices, then the future might be quite different for the firm.
The impact of high cocoa on Mondelez International, Inc. (NASDAQ:MDLZ)’s business was also present in Carillon Tower Advisors’ Q1 2024 investor letter where it shared:
As a major producer of chocolate, Mondelez saw its shares drop as investors worried about a dramatic rise in the price of cocoa. Mondelez does have hedges in place, but the company will need to raise prices to offset rising costs, particularly in Europe. Consumers across the globe are dealing with high cumulative inflation in the products that the company produces. In many cases consumers are buying less volume.
9. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Latest Fiscal Year Annual Growth Rate: 14.49%
Bridgewater Associates’ Q1 2024 Investment: $87.2 million
Intuitive Surgical, Inc. (NASDAQ:ISRG) is a leading edge medical technology company that is known globally for its robotic surgery systems. The firm’s daVinci robotic surgery platform enjoys a strong competitive edge in the market since there are few alternatives available. This positions Intuitive Surgical, Inc. (NASDAQ:ISRG)’s stock relatively well in the highly competitive medical technology and equipment market as developing a comparable platform comes with significant investment costs, technological complexity, and barriers to entry. Key to Intuitive Surgical, Inc. (NASDAQ:ISRG)’s success though is its ability to continuously announce upgrades to its surgical robots and ensure that customer relationship management is flawless. This is because while the firm makes money from selling the robots, an equally important chunk of revenue also comes from providing support services to hospitals.
Baron Funds mentioned Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q1 2024 investor letter. Here is what the firm said:
Intuitive Surgical, Inc. sells the da Vinci surgical robotic system for minimally invasive surgical procedures. The stock rose after the company announced the planned launch of the da Vinci 5, its next-generation, multiport robotic system. The new system has 10,000 times the computing power of its predecessor and features over 150 design upgrades such as force feedback, improved visualization, and productivity enhancements. Intuitive plans to launch the device at a small number of customers in the U.S. before releasing it more broadly. We think the da Vinci 5 will enable Intuitive to continue to generate strong revenue and earnings growth and maintain its competitive edge.
8. Meta Platforms, Inc. (NASDAQ:META)
Latest Fiscal Year Annual Growth Rate: 15.69%
Bridgewater Associates’ Q1 2024 Investment: $482 million
Meta Platforms, Inc. (NASDAQ:META) needs no introduction due to the near ubiquity of its social media products. Its size and heft, aided by a large user base, means that the firm has to continuously think of unique ways to increase user engagement on Facebook and Instagram. The more time users spend on Meta Platforms, Inc. (NASDAQ:META)’s platforms, the more money the firm can earn through advertisers, which are often eager to work with it due to the sizeable user base. Meta Platforms, Inc. (NASDAQ:META) has also kept itself abreast with the latest technology trends by not only competing at the high end of the artificial intelligence industry through its Llama AI model but by also integrating AI features into its platform to drive consumer engagement. This makes Meta Platforms, Inc. (NASDAQ:META) an early mover in integrating AI into social media, and the only headwinds that it can face are a slowdown in ad spending due to economic weakness or regulatory action against its heft.
Baron Funds mentioned Meta Platforms, Inc. (NASDAQ:META) in its Q1 2024 investor letter. Here is what the fund said:
Shares of Meta Platforms, Inc., the world’s largest social network, rose 37.3% in the quarter due to robust fourth quarter top-line growth of 25% year-over-year with operating margins more than doubling year-over-year to 41%, benefiting from the year of efficiency12 as Meta’s headcount was down 22% year-over-year (note that the profitability of the core business is even stronger as Reality Labs’ losses of over $4.5 billion in the quarter are included in the overall operating income metric). Meta also guided for first- quarter revenue growth of approximately 29% year-over-year, which was better than expected. Advertiser satisfaction and adoption of Meta remains strong, core app engagement is healthy with video daily watch time up 25% year-over-year and the total number of monthly active users up 6% year-on-year to 3.98 billion in the fourth quarter, and Instagram Reels and click-to-message ads monetization continues to improve. Meta also continues to rapidly innovate in GenAI, with its leading research lab releasing widely adopted open-source models (e.g., Llama 2), and internal algorithms and core apps becoming augmented with AI (e.g., Meta’s recommendation engine). We remain shareholders and believe Meta can sustain its leading market share in digital advertising thanks to strong network effects enabled by its massive user and advertiser base. Additionally, we believe the company’s innovative culture, large installed base, and leading GenAI research should enable it to embed AI and GenAI into its offerings with further monetization opportunities ahead. For example, AI agents could help scale business messaging, handling a large volume of customer requests on behalf of business customers, making business messaging at scale more viable.
7. Uber Technologies, Inc. (NYSE:UBER)
Latest Fiscal Year Annual Growth Rate: 16.95%
Bridgewater Associates’ Q1 2024 Investment: $116 million
Uber Technologies, Inc. (NYSE:UBER) is the well known ride sharing and delivery services provider. Recent years have set it apart from rivals in both the food delivery and ride sharing space, as while rivals struggle to make a profit, Uber Technologies, Inc. (NYSE:UBER)’s 40% profit margin and 150% free cash flow growth during the first quarter have been the talk of the town. However, well known investors such as Ken Fisher have sold not only Uber Technologies, Inc. (NYSE:UBER) but also other stocks in the industry, hinting that perhaps there’s trouble brewing under the hood. While the moves could represent profit taking after a 62% share price jump over the past 12 months, it could also mean that investors are wary of the biggest threat to Uber Technologies, Inc. (NYSE:UBER) and the industry. This threat is legislation that forces the firm to treat its drivers as employees and leads to higher costs as Uber Technologies, Inc. (NYSE:UBER) is forced to pay higher salaries and provide benefits.
Fund RiverParkAdvisors is bullish on Uber Technologies, Inc. (NYSE:UBER) though. In its Q1 2024 investor letter, the fund shared:
UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now profitable, delivering expanding margins and substantial free cash flow. We view UBER as more than a ride sharing and food delivery service; we also see it as a global mobility platform with 142 million users (by comparison, Amazon Prime has 200 million members) and the ability to penetrate new markets of on-demand services, such as package and grocery delivery, travel, and hourly worker staffing. Given its $5.4 billion of unrestricted cash and $4.8 billion of investments, the company today has an enterprise value of $165 billion, indicating that UBER trades at 21x our estimates of next year’s free cash flow.
6. Eli Lilly and Company (NYSE:LLY)
Latest Fiscal Year Annual Growth Rate: 19.56%
Bridgewater Associates’ Q1 2024 Investment: $218 million
Eli Lilly and Company (NYSE:LLY) is the well known healthcare giant that’s been in the news for months because of its weight loss drugs. The story of Eli Lilly and Company (NYSE:LLY)’s Mounjaro shows that in the rare case when big firms do innovate, they benefit far more than smaller firms due to their ability to completely disrupt the industry courtesy of economies of scale. Eli Lilly and Company (NYSE:LLY) also benefits from its scale by having a diversified medicine portfolio which sees its diabetes treatment Trulicity, breast cancer treatment Verzenio, and immune system drug Tartz also contribute to a significant portion of its revenue. The firm is also currently undertaking phase three clinical trials for Orforglipron, a potential low cost weight loss/diabetes drug and phase three trials for a potential Mounjaro successor. If commercialized successfully, these drugs could set up Eli Lilly and Company (NYSE:LLY) well for years to come.
Baron Funds is also quite optimistic about Eli Lilly and Company (NYSE:LLY). Here’s what it had to say during its Q1 2024 investor letter:
Eli Lilly and Company is a global pharmaceutical company that discovers, develops, manufactures, and sells medicines in the categories of diabetes, oncology, neuroscience, and immunology, among other areas. Stock performance was strong due to robust fourth quarter sales of Mounjaro/ Zepbound, better-than-anticipated initial guidance for fiscal year 2024, and ongoing enthusiasm surrounding the company’s obesity and diabetes franchises. We continue to think Lilly is well positioned to grow revenue and earnings at attractive rates through the end of the decade and beyond.
5. DexCom, Inc. (NASDAQ:DXCM)
Latest Fiscal Year Annual Growth Rate: 24.49%
Bridgewater Associates’ Q1 2024 Investment: $51 million
DexCom, Inc. (NASDAQ:DXCM) is a medical devices company that makes software to allow diabetes patients to monitor their glucose levels. The firm enjoys a dominant position in its market due to its technological advantages which allow diabetes patients to monitor their glucose levels around the clock. This provides superior monitor capabilities over the traditional finger prick tests, and DexCom, Inc. (NASDAQ:DXCM) has also developed a global operations base that allows it to target several countries with its products. However, its very strength of having a robust product can prove to be a headwind in the off case that a strong competitor emerges or the diabetes market undergoes a paradigm shift. This is because DexCom, Inc. (NASDAQ:DXCM) does not target any other markets, in a classical case of the proverbial all eggs being placed in one basket.
This was also evident in 2023, which was the year of weight loss drugs on Wall Street. The shares tanked by 45% between July and October, as investors were worried that weight loss drugs could upend the diabetes market. However, as Artisan Partners notes in its Q4 2023 investor letter, these fears were short lived. Here’s what it had to say about DexCom, Inc. (NASDAQ:DXCM):
DexCom is the leader in continuous glucose-monitoring systems (CGM). We believe it is well positioned to continue penetrating the Type 1 diabetes market and to drive adoption in the much larger Type 2 diabetes market, with data increasingly supporting the clinical and economic case for using CGM sensors. By most indicators, DexCom is poised for a period of significant top- and bottom-line growth. Having made substantial investments in global distribution, product development and branding, the company has a receptive base of patients, physicians and payors ready for its newly launched next-generation G7 sensor. Shares experienced weakness earlier in the year due to market concerns that the rapid growth of GLP-1 diabetes/obesity drugs will reduce demand for diabetes management technologies. However, our view is that while the magnitude of the GLP-1 adoption will likely have both good and bad impacts on how CGMs are used, these changes will be slow to play out. Given this view, and an opportunistic valuation, we added to our position in Q4. Our patience was rewarded as shares rallied after the company reported strong financial results and management provided evidence of the synergies between CGMs and GLP-1 drugs in the fight against the obesity epidemic.
4. Booking Holdings Inc. (NASDAQ:BKNG)
Latest Fiscal Year Annual Growth Rate: 25.01%
Bridgewater Associates’ Q1 2024 Investment: $97 million
Booking Holdings Inc. (NASDAQ:BKNG) is a global travel services provider whose platform enables users to manage their travel. The fact that it is a globally recognized brand name, recorded 560 million visits to its website in March 2024, and had over 100 million users on its app makes Booking Holdings Inc. (NASDAQ:BKNG)’s future quite robust as far as market share is concerned. These statistics insulate the company against competition from current or potential rivals. However, Booking Holdings Inc. (NASDAQ:BKNG) has to ensure that it keeps up with the industry in offering unique features that improve customer satisfaction. On this front, Booking Holdings Inc. (NASDAQ:BKNG) has been integrating AI features into its platform, and its AI Trip Planner allows customers to use the firm’s database of hotels and users to tailor them and deliver unique responses to queries. Key headwinds remain in the form of a global economic slowdown and disruptions to the travel industry such as those during the pandemic.
Wedgewood Partners mentioned Booking Holdings Inc. (NASDAQ:BKNG) in its Q1 2024 investor letter. Here is what the firm said:
Booking Holdings contributed negatively to relative performance. The Company grew bookings on their platforms +16% and reported +22% growth in adjusted operating income during their fourth quarter of 2023. We think the market is cautious about the Company’s results for 2024 because they will be lapping very high levels of growth compared to those in 2023 (full year 2023 bookings growth +24%). However, Booking’s end markets continue to be quite healthy, outside of geographies affected by war because consumers still have plenty of wallet share to re-dedicate to travel compared to pre-COVID-19 numbers. We applaud the Company as they aggressively repurchase shares at valuation levels well below the market and peers. This should serve to compound our ownership in Booking’s business, which has exceptional profitability.
3. DoorDash, Inc. (NASDAQ:DASH)
Latest Fiscal Year Annual Growth Rate: 31.17%
Bridgewater Associates’ Q1 2024 Investment: $81 million
DoorDash, Inc. (NASDAQ:DASH) is primarily a food delivery services provider that connects restaurants with their customers through delivery drivers. While it has been trying to diversify into other markets, its primary business model is still food delivery where DoorDash, Inc. (NASDAQ:DASH) is a market leader. One initiative that the firm is heavily investing in is grocery delivery, as DoorDash, Inc. (NASDAQ:DASH) believes that it can use its vast driver network to expand into the grocery space and take on eCommerce firms. These initiatives make DoorDash, Inc. (NASDAQ:DASH) a classic growth firm which has also left investors yearning for profitability. Analysts expect the firm to turn profitable in Q3, so 2024 can end up with some fireworks for the delivery company. The growth initiatives also stole the story during DoorDash, Inc. (NASDAQ:DASH)’s Q1 2024 earnings report. The set of financials saw the midpoint of its operating income (EBITDA) guidance for Q2 of $375 million missing analyst estimates of $394.4 million. Like other industry players, DoorDash, Inc. (NASDAQ:DASH) might also face additional cost pressure in the future if new regulations force it to treat its drivers as employees. This can raise costs and further stress an income statement that is already strained by growth spending.
DoorDash, Inc. (NASDAQ:DASH)’s initiatives and profitability were also at the center of Artisan Partners’ coverage of the firm in its Q1 2024 investor letter. Here is what the fund said:
During the quarter, we initiated new GardenSM positions in DoorDash, GoDaddy and Vertiv. DoorDash is a technology-driven marketplace that enables couriers (Dashers) to deliver restaurant and other local orders on-demand to consumers. The company is a market leader in restaurant delivery, a business that continues to gain US market share (with healthy margins) and grow internationally. At the same time, heavy investment in newer businesses has limited company profitability. Most notably, grocery delivery is a largely untapped market due to inventory management challenges (in-person grocery shopping involves a high degree of product substitution). This business unit has been losing money. However, the company believes it has a competitive cost advantage given its existing Dasher network, and continued growth will lead to profitability—something it is not getting credit for by the market. The future near-term profit trajectory from new businesses is unclear, but we view management as very rational with its spending. Either these initiatives will yield additional profitable revenue streams, or they will be deprioritized in the coming years—in both scenarios, we expect solid profit growth over time.
2. PDD Holdings Inc. (NASDAQ:PDD)
Latest Fiscal Year Annual Growth Rate: 89.68%
Bridgewater Associates’ Q1 2024 Investment: $179 million
PDD Holdings Inc. (NASDAQ:PDD) is a diversified eCommerce retailer that delivers groceries, furniture, home appliances, and a wide variety of other products. Since it’s a relatively new player in the somewhat mature eCommerce market, PDD Holdings Inc. (NASDAQ:PDD) is taking risks and is a hungry company. It has one of the most unique business models in its Chinese platform Pinduoduo, which allows customers to team up and order in bulk from retailers to drive down buying prices. This leverages the Chinese culture of collaboration, and PDD Holdings Inc. (NASDAQ:PDD) also benefits from directly partnering up with merchants to deliver bulk orders. The discount model has helped the firm leverage Chinese economic weakness to its advantage. PDD Holdings Inc. (NASDAQ:PDD)’s global eCommerce platform, called Temu, also leverages its Chinese strengths to reduce costs as the firm uses its well established merchant base to sell lower priced products in Western markets. While these are all well and good, growing trade tensions between the West and China coupled with the risks of Americans’ data being accessed by Chinese companies as evidenced by TikTok could prove to be a headwind.
GreenWood Investors was out with a rather interesting Q4 2023 investor letter when it comes to PDD Holdings Inc. (NASDAQ:PDD). Here is what the firm said:
This herd-like mentality opened up two extremely high-quality investment opportunities for us in the back half of 2023. Using insights gleaned from our close proximity to e-commerce at CTT, we undertook a multi-month effort to underwrite PDD Holdings. This US-listed Irish holding company owns China’s leading disruptive marketplace called PinDuoDuo. During the summer, as it became unbearable for most investors to remain publicly invested in Chinese equities, we took a position in PDD.
During our diligence phase, a local Hong Kong investor that was invested in the company noted that Western investors should just stay away as they won’t appreciate PDD’s operating culture. He highlighted how the company gives no guidance, talks to no investors, and does not optimize its business for the short term. This means that quarterly earnings often have very large deviations from consensus, driving >20%+ moves in the stock. Paired with an extremely bearish market sentiment on Chinese equities, this combination became “uninvestable for those in western markets.”
Adding to the narrative during the summer for PDD was that its international business, Temu, was burning cash and carried with it a negative valuation consolidated into PDD’s holding company structure. Yet, as we were able to validate the major competitive advantage its direct-selling model has, from Chinese factory direct to the global consumer, we understood the losses to be highly temporary as the company leaned into digital marketing — becoming by far the largest digital advertiser on all leading platforms.
Temu has moved extremely rapidly to over-take Shein in global consumer wallet share, surpassing this highly-valued, yet private, startup in shipment volumes in many markets we track. While investors that own Shein continue to mark their investment to a mythical level, Temu is rapidly curtailing the market opportunity that Shein had in front of it. Yet, because of quarterly earnings volatility, we were able to take a position in this promising startup at a negative valuation.
1. NVIDIA Corporation (NASDAQ:NVDA)
Latest Fiscal Year Annual Growth Rate: 125.85%
Bridgewater Associates’ Q1 2024 Investment: $636 million
NVIDIA Corporation (NASDAQ:NVDA) is unsurprisingly the top revenue growth stock in Ray Dalio’s portfolio. The firm’s fortunes have soared due to the strong demand for its AI GPUs, which are industry leading when it comes to performance. One particular competitive advantage of NVIDIA Corporation (NASDAQ:NVDA)’s GPUs is the CUDA platform. CUDA is the firm’s proprietary software which enables users to use the chips for AI and other associated workloads. NVIDIA Corporation (NASDAQ:NVDA) also benefits from close ties to its customers, through which it guides them on the most efficient ways in which to use its products. CUDA sets it apart from products from smaller rival AMD, and it has allowed it to target some of the biggest firms in the world with its products.
However, the fact that its products are pricey and that its biggest customers have adequate resources to develop their own AI chips means that NVIDIA Corporation (NASDAQ:NVDA) is constantly in a rush to launch the latest products and prove its mettle. Big ticket firms the likes of Microsoft, Google parent Alphabet, and Facebook parent Meta have all designed and used their custom chips or are designing their own chips, even for AI workloads. This makes the future quite interesting for NVIDIA Corporation (NASDAQ:NVDA).
Baron Funds, whose largest investment position was in NVIDIA Corporation (NASDAQ:NVDA) as of Q1 2024 end, was cognizant of the firm’s innovational lead when it comes to the well known S Curve. Here is what the fund said in its Q1 2024 investor letter:
We are early on the adoption S-curve – most companies are still in the proof of concept stage while very few are ready for production today. Hurdles in implementing AI include data prep, model adaptation and fine-tuning, and embedding of AI into existing workflows. There is a lot of innovation taking place to reducing these hurdles – from tools and infrastructure that help companies build and run AI models more easily, to third-party AI models exposed via Application Programming Interfaces (APIs) that enable companies to use them without building their own models from scratch. NVIDIA’s ecosystem across developers, system integrators, cloud providers and independent software vendors, and internal software innovation are lowering these hurdles as well. For example, one of the most interesting announcements at the GTC conference were NVIDIA Inference Microservices – or NIMs, which are APIs to easily access open-source models (NVIDIA already has dozens of models available) without the need to worry about model optimizations, security, patching, or sending data to third parties. NIMs could ease AI adoption for enterprises while also driving incremental monetization for NVIDIA, priced at $4,500/GPU or at $1/GPU hour if used on the cloud, and increase the stickiness of NVIDIA’s platform.
While NVDA is an unsurprising Ray Dalio growth stock, 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 MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
Disclosure: None.
