20 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. Earlier this week, Tesla chief Elon Musk announced that Colossal, an AI training system, had been brought online by his AI startup, xAI. xAI is valued at around $24 billion. The system is powered by 100,000 H100 graphic processing units (GPUs) made by NVIDIA. This AI model is the most powerful ever built. For context, the AI model of Google uses a cluster of 90,000 GPUs while the one at Meta uses 70,000. The H100 GPUs are slowly being replaced by H200, and the rumored Blackwell-based GPUs. Musk has already announced that Colossal would double in size by shifting to H200 GPUs in the coming months.

Amid uncertainty around the production ramp for Blackwell, the H200 GPUs marketed by NVIDIA Corporation (NASDAQ:NVDA) are becoming increasingly popular. The H200 comes with 141 gigabytes of HBM3E memory and 4.8 terabytes per second of bandwidth. Musk claims only 50,000 H200 GPUs would double the size of Colossal if the H100 GPUs were replaced. In comparison, the latest Blackwell chips are even faster and more efficient. The top-end capacity of Blackwell GPUs would be 36% higher than the H200 and 66% higher in total bandwidth.

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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