30 Most Important AI Stocks According to BlackRock

1.  NVIDIA Corporation (NASDAQ:NVDA) 

Number of Hedge Fund Holders: 179 

NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. The company is positioned well for mid-teens returns in the coming months due to a variety of factors, including strong AI chip demand, reasonable valuation, and robust earnings growth. The stock price has dropped amid a broader sell off in the tech sector, offering a buying opportunity for shrewd investors who have noticed that the P/E ratio of the firm is now in line with peers in the tech world, even as NVIDIA offers better growth prospects. An important catalyst that might spur the shares is the launch of Blackwell chips, possibly in the fourth quarter, driving strong demand from companies looking towards AI advancements.

Wall Street analysts are also overwhelmingly bullish on NVIDIA Corporation (NASDAQ:NVDA). Bank of America has a Buy rating on the stock with a price target of 165. In a recent investor note, the advisory named NVIDIA as the top sector pick, highlighting that near-term headwinds for the company could potentially create an enhanced buying opportunity with the stock trading within the lowest quartile of valuation in the past five years, even as it offers compelling growth at a compelling valuation.

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: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 13 High Growth Semiconductor Stocks That Are Profitable in 2024 and the 11 Best AI Penny Stocks to Invest in Now.