15 Trending AI Stocks on Latest Analyst Ratings and News

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1.  NVIDIA Corporation (NASDAQ:NVDA

Number of Hedge Fund Holders: 179 

NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. The company is famous for the graphic processing units (GPUs) it markets. These GPUs are capable of handling complex computational tasks that AI softwares demand, thus the claim to fame. The firm has been investing in AI-specific chips, a more AI-focused version of GPUs, since 2012. The GPU business has been making the waves since 2017, when the company launched Volta, a chip that could speed up performance by five times versus competitors. Various successors to Volta have since been released, most notably Ampere in 2020, Hopper in 2022, and the latest Blackwell, reportedly releasing early next year.

NVIDIA Corporation (NASDAQ:NVDA) also has a sizable networking portfolio that will serve the company in good stead as AI infrastructure investment takes off. Ahead of the third quarter earnings report of the firm, expected next week, Wall Street analysts are bullish on the shares. Goldman Sachs has a Buy rating on the stock with a price target of $135. In a recent investor note, the advisory noted that the setup for NVIDIA was constructive with a compelling risk/reward on potential for positive earnings revisions.

While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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