18 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. Latest reports from The Wall Street Journal and Bloomberg reveal that the company is planning to invest in a funding round for OpenAI, the firm that launched ChatGPT back in late 2022 to kickstart the AI revolution. Other tech big hitters like Apple and Microsoft will likely also participate in this funding round. OpenAI would reach a valuation of $100 billion if the funding goals for this round are achieved. The reports come within hours of NVIDIA topping analyst expectations on earnings and guidance for the second quarter of this fiscal year.

NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang, in an appearance on news platform CNBC after the earnings call, said that the company expected to earn billions of dollars in revenue from volume production of Blackwell chips in the fourth quarter and ramp up from there. Huang also underlined that hyperscalers only represented 45% of the total data center revenue of his company, emphasizing that NVIDIA was well diversified in this area, with customers ranging from internet service providers, sovereign AI firms, to industries and enterprises.

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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