12 Best Automation Stocks To Buy According to Hedge Funds

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1. NVIDIA Corporation (NASDAQ:NVDA)

No. of Hedge Fund Holders: 193

NVIDIA Corporation (NASDAQ:NVDA) is the leading GPU manufacturer and produces high-end units widely used in AI. The chipmaker has entered the robotics segment with continuous development of its Isaac™ robotics platform. This platform supports application in research, development, and production of the next generation of Al-enabled autonomous machines and robots. Companies such as BYD Electronics, Siemens, Teradyne Robotics, and Intrinsic, are using the NVIDIA Isaac Robotics Platform for autonomous robot arms, humanoids, and mobile robots.

On January 28, Morgan Stanley analyst Joseph Moore lowered its price target on NVDA shares from $166 to $152, maintaining an Overweight rating. Moore pointed out that DeepSeek’s R1 AI model could introduce cost-reducing innovations in AI, which may impact NVIDIA. Although analysts have lowered the price target on NVDA, they are still optimistic about the company’s strong position in the semiconductor market and its dominance in the AI sector.

In the long term, NVIDIA remains a top stock and can be a good buy considering the drop in its price. The rising demand for data centers and AI will continue to push the demand for NVIDIA’s GPUs. However, the demand for NVDA’s high-end units may drop if DeepSeek’s AI model sustains its hype in the long run.

While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that 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.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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