20 Trending AI Stocks on Latest News and Ratings

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1.     NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 179

Leading the way in AI computing, NVIDIA Corporation (NASDAQ:NVDA) is a star AI stock. It is not only the leader in the AI chip market but has built a comprehensive AI ecosystem that spans graphics, computing, and networking solutions. Its GPUs are the backbone of AI innovation globally, powering everything from advanced data centers to autonomous systems.

TD Cowen Analysts further reiterated its $165 price target for Nvidia, calling it its top pick amidst surging demand for its new supercomputing AI chips, Blackwell. Stocks tied to the chipmaker, such as Arm Holdings (ARM), TSMC (TSM), and Nvidia-backed Soundhound AI (SOUN) also gained on October 14, 2024; leading the S&P 500 to a record high.

Morgan Stanley analyst Joseph Moore has reiterated Nvidia as a “top pick,” with a Buy rating and a price target of $150 per share. According to Morgan Stanley analysts, its new Blackwell AI chips are so much in demand that production is reportedly booked out for the year. Moreover, the company’s exceptional stock performance is supported by strong revenue growth that has tripled over the past four quarters.

While we acknowledge the potential of 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 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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