35 Chip Stocks In Focus Amid Tech Selloff

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1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 193   

NVIDIA Corporation (NASDAQ:NVDA) operates as a visual computing firm. JP Morgan recently reiterated its Overweight rating on Nvidia, noting that past innovation cycles suggest that efficiency and technology improvements drive further adoption and innovation. Analysts led by Harlan Sur said that after the launch of the DeepSeek R1 large language model last week, investors were concerned regarding the intermediate and long-term effects for AI semiconductor spending given the Chinese startup’s claim regarding their compute efficiency in terms of cost and performance for training/inferencing AI models. However, the analysts noted that despite the impressive cost efficiency of DeepSeek’s training and inference, several questions remain unanswered, including the complete training costs for R1 and the extent of reliance on larger open-source foundation models developed earlier.

While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a 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.

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