10 Best Quality Stocks to Buy According to Analysts

6. NVIDIA Corp. (NASDAQ:NVDA)

Average Upside Potential: 22.10%

Number of Hedge Fund Holders: 179

NVIDIA Corp. (NASDAQ:NVDA) is known for its high-performance GPUs, which are widely used in gaming, artificial intelligence, data centers, and professional visualization. Its GPUs are essential for powering advanced graphics and computing tasks, and they are a key component in many modern technologies, such as self-driving cars, virtual reality, and supercomputers.

The company recently partnered with Accenture. Management recently talked about this partnership and its new AI chip, Blackwell. Blackwell is now being made in large numbers, and there is a lot of demand for it. AI will help businesses innovate faster through the partnership with Accenture. In late August, management also approved a $50 billion share buyback program.

NetApp released a new AI tool on September 25 that uses NVIDIA technology to help businesses manage their data. Elon Musk’s company, xAI, is using 100,000 NVIDIA H100 GPUs for its AI project, Colossal. Colossal may grow to use H200 GPUs and Blackwell chips in the future.

Its networking platform for AI, Spectrum X, is expected to be worth billions of dollars within a year. The company recently partnered with Salesforce to help businesses use AI and data better. In September, the company also introduced a new AI tool called Aerial to improve wireless networks for mobile devices, robots, self-driving cars, and 5G.

Its software called CUDA gives it an advantage over competitors. However, the company’s future depends on continuing to innovate and find ways to make money from AI. CUDA is a tool that helps developers use GPUs for different kinds of computing. Experts think the company should focus more on robotics to grow.

Columbia Contrarian Core Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) – Following the release of first-quarter earnings in May featuring record revenue growth of 262% year over year, NVIDIA continued its upward march. On June 10, shares of the company began trading on a split-adjusted basis following a 10-for-1 forward stock split, making stock ownership more accessible to employees and investors alike. Just one week later, the company officially surpassed Microsoft in market cap to become the most valuable publicly traded company (although it would relinquish the title not long after). While other companies have also stood to benefit from the artificial intelligence (AI) trend this year, NVIDIA stands out as the unquestionable leader in the space and that is unlikely to be challenged for many years ahead. NVIDIA continues to see extremely strong levels of demand and the recent introduction of the Blackwell system looks to be an exciting next phase of growth for the stock.”