20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts

12) NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 193

Average Upside Potential: 31.0%

NVIDIA Corporation (NASDAQ:NVDA) is well-placed to benefit from the heightened investment in AI technology. Data centers require GPUs for AI training and inferencing. The company expects a $1 trillion opportunity for its business, stemming from the fact that data centers have been upgrading legacy computing systems to AI-optimized hardware. Mizuho upped its price target for NVIDIA Corporation (NASDAQ:NVDA) from $140 to $165, maintaining an “Outperform” rating.

Mizuho analyst, Vijay Rakesh, believes that the company’s GB200 NVL72 and GB300 are expected to provide significant support. The analyst also highlighted that NVIDIA Corporation (NASDAQ:NVDA)’s entry into the sovereign market is expected to expand in 2025, potentially making a contribution of ~$10 billion, or roughly 9-11% of the company’s data center revenue. McKinsey believes that global demand for data center capacity is expected to rise at an annual rate of between 19% – 22% from 2023 to 2030 to reach an annual demand of 171 to 219 gigawatts (GW). This is expected to significantly benefit NVIDIA Corporation (NASDAQ:NVDA), which controls 70% – 95% of the advanced AI chip market share as per  Mizuho Securities.

Manole Capital Management, an investment management company, focused on covering the Financial and Technology sectors, released its Q3 2024 investor letter. Here is what the fund said:

“As of this publication, Nvidia is up roughly 150% year-to-date. NVIDIA Corporation (NASDAQ:NVDA) was the largest gainer in the S&P 500 last year and has more than tripled in value over the last year. It hit an eye-opening market capitalization of $3 trillion in June, less than four months after it eclipsed the $2 trillion mark. Enthusiasm for everything AI-related, especially for the primary chip maker whose products are essential to powering AI technology, continues to fuel the market. Last quarter, and for the fifth consecutive quarter, Nvidia reported sales and profits that blew past Wall Street expectations. The stock rose +37% in the second quarter alone.”