10 Hot AI Stocks to Watch Right Now

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 223

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. One of the biggest analyst calls on Tuesday, February 25, was for Nvidia Corporation. Truist Securities analyst William Stein reiterated a “Buy” rating on the stock with a $204.00 price target, stating that Nvidia is “still the AI leader and the one to own” ahead of earnings on Wednesday.

“Heading into CQ4 (Jan) results, NVDA is still the AI leader and the one to own; Lots of noise, but the data we trust most is encouraging. NVDA reports its CQ4 (Jan.) result on Weds 2/26. We expect NVDA will (1) deliver upside vs. consensus in its CQ4 (Jan) results & CQ1 (Apr) guidance, (2) highlight a narrowing of SKUs around the NVL72 configuration, (3) express confidence in CY25 owing to very robust backlog, and (4) focus on the next drivers of growth after LLMs: data processing, and physical AI. Our CY26 EPS is $5.84; PT is $204 based on 35x P/E (15x discount to hi-growth semis).

We expect NVDA will deliver modest upside relative to consensus for CQ4, and will guide CQ1 ~inline with sell side consensus of $42B. Inline with our industry contact feedback, we expect the company to discuss a consolidation of Blackwell SKUs around the NVL72 system. The capex data points bode well for NVDA’s backlog and medium-term outlook. Looking further into the future, we expect management to discuss emerging AI models & techniques including data processing and physical AI (robotics). We expect this will be a positive catalyst for the stock…and the next one will be GTC in March.”

-William Stein