15 AI News Investors Should Not Miss

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 179

NVIDIA Corporation (NASDAQ:NVDA) is a global technology company engineering the most advanced chips, systems, and software for the AI factories of the future. The company is said to represent “the dominant” infrastructure player behind the current rise of the AI sector.

Wall Street is abuzz with excitement about NVIDIA Corporation (NASDAQ:NVDA)’s new AI chip, Blackwell. Sector analysts are enthusiastic about the company’s potential major upside in the fourth quarter with all the initial rush of Blackwell.  On October 18, Ram Ahluwalia, Lumida Wealth Management CEO, discussed on Yahoo Finance’s Catalysts how things are looking up for NVIDIA Corporation (NASDAQ:NVDA) .

According to Lumida CEO, the company is still in the “early innings” and expects that Nvidia’s stock will reach $150 between now and the end of the year. With the hyperscalers intending to each spend between $50 and $100 billion on GPU compute, the primary beneficiary is going to be NVIDIA Corporation (NASDAQ:NVDA), he says. Lumidia’s CEO further commented how the company has a class of its own and doesn’t have a “close competitor”. There is a growing confidence that the chip giant will be the first Tech firm to reach a $4 trillion valuation.

“We made a call earlier this year that Nvidia would be the most valuable company in the world. It achieved that milestone yesterday, and the demand for GPU chips is strong. And you’re seeing enterprises start to get some ROI (return on investment) on it from the early adopters”.

On Friday, October 18, Bank of America analyst Vivek Arya reiterated his “Buy” rating on the stock, raising his price target by $25 to $190. From Taiwan Semiconductor’s (one of Nvidia’s major suppliers) third-quarter results to the “insane” demand for Blackwell chips as quoted by Nvidia CEO Jensen Huang, the analyst believes that recent industry trends have the potential to increase the company’s lead and generational opportunity. Furthermore, “underappreciated” enterprise partnerships with companies are also catalysts for more growth.

“We also highlight a growing presence of AI in enterprise, where NVDA is the partner of choice (more on pg. 10)”.

– Vivek Arya

According to the bank’s forecast, the AI technology market will grow from $45 billion in 2023 to $117 billion this year while Nvidia maintains a 75% market share, which translated to a staggering $272 billion in AI computing revenues for Nvidia by 2030. Arya also believes the company could see at least $200 billion in free cash flow generation over the next two years.