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. David Tepper, the chief of Florida-based investment firm Appaloosa Management, has urged investors to be cautious about investing in the chipmaker because of uncertainty around the long-term growth prospects of artificial intelligence. Tepper made the comments during an appearance on news platform CNBC last week. The hedge fund manager, who reduced a major stake in NVIDIA on behalf of his fund in the second quarter of 2024, per latest 13F filings, said he sold the stock because he thought it was too high at the time and would come down. Tepper expressed disappointment that he could not buy the shares when they came back down.

Tepper, whose hedge fund owns nearly $85 million worth of NVIDIA stock despite the recent reduction, acknowledged that NVIDIA Corporation (NASDAQ:NVDA) was a major player in the AI boom and could still have some upside, but expressed doubts about the sustainability of AI demand. He questioned whether there was enough power for AI growth and whether next generation models could take their chips.

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 Corporation (NASDAQ:NVDA) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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