1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
Gotham Asset Management’s Q4 2024 Stake: $270.59 million
NVIDIA Corporation (NASDAQ:NVDA) is a global leader in AI, GPUs, and high-performance computing. Although increased competition from rising companies such as DeepSeek might appear worrisome, the Wall Street superstar maintains its dominance in the AI hardware industry, aided by its extensive software ecosystem.
On February 25, Evercore ISI analyst Mark Lipacis maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA), with a $190 price target. Even though the stock has lagged the overall market, it is still deemed inexpensive. It is trading at a lower price-to-earnings ratio than its historical average, providing an appealing entry opportunity for investors ahead of the company’s earnings release.
Manole Capital Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“As of this publication, Nvidia is up roughly 150% year-to-date. NVIDIA Corporation (NASDAQ:NVDA) was the largest gainer in the S&P 500 last year and has more than tripled in value over the last year. It hit an eye-opening market capitalization of $3 trillion in June, less than four months after it eclipsed the $2 trillion mark. Enthusiasm for everything AI-related, especially for the primary chip maker whose products are essential to powering AI technology, continues to fuel the market. Last quarter, and for the fifth consecutive quarter, Nvidia reported sales and profits that blew past Wall Street expectations. The stock rose +37% in the second quarter alone.”
While we acknowledge the potential of NVDA, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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