19 Trending AI Stocks on Latest Analyst Ratings and News

1.  NVIDIA Corporation (NASDAQ:NVDA) 

Number of Hedge Fund Holders: 179 

NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. The company is a leader in the AI hardware space, controlling nearly 90% of the market for AI GPUs. However, the AI software capabilities of the firm often go under the radar. NVIDIA has a distinct advantage over competitors like Intel and AMD when it comes to AI software offerings. Some examples of this include the CUDA and AI Enterprise software marketed by the chipmaker. The company charges $4,500 per GPU per year for AI software and tech giants that pay for NVIDIA GPUs also pay for these software features in advance. Within the AI software, the firm also markets the DGX Cloud, a cloud service that allows users to train and deploy AI models over the cloud. This service costs a whopping $37,000 per month.

Wall Street analysts have been monitoring NVIDIA Corporation (NASDAQ:NVDA) closely. Morgan Stanley has an Overweight rating on the shares with a price target of $144. In a recent investor note, analyst Joseph Moore detailed that the advisory expected initial volumes of Blackwell in the October quarter, as the initial product was functional but with somewhat lower yields, and still expected a volume ramp of the next revision of silicon through January – all of which was still within the broad brush strokes of guidance.

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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