5 Best Semiconductor Stocks To Buy For The AI Boom

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 132

NVIDIA Corporation (NASDAQ:NVDA) is the current market leader in the AI chips space, where it dominates all other rival companies with its fast processing chips and GPUs.

NVIDIA Corporation (NASDAQ:NVDA) had 132 hedge funds long its stock during the first quarter. Their total stake value in the company was $12.3 billion.

A Buy rating was maintained on NVIDIA Corporation (NASDAQ:NVDA) shares by William Stein at Truist on July 14, alongside a $545 price target.

Artisan Partners said the following about NVIDIA Corporation (NASDAQ:NVDA) in its second-quarter 2023 investor letter:

“Top contributors to performance for the quarter included graphics semiconductor company NVIDIA Corporation (NASDAQ:NVDA). Nvidia rose after reporting strong results and forecasting significantly higher data center revenues for the coming quarter, driven by rising artificial intelligence investments around the world.

When we are successful in achieving disproportionate equity outcomes, we need a process for managing them. Entering this year, we had a ~6.5% position in Nvidia. Due to the enthusiasm for generative AI and a rapid conclusion to “cloud optimization,” the stock has surged 189.5% this year including 52.31% in Q2. We retained an investment in Nvidia with less capital at risk, an approach which afforded us the potential to prudently participate in excellent investments over long periods of time. Notably, despite our gradual position reductions, Nvidia has contributed 1491bps to performance since inception. In turn, these value pathways form the foundation upon which our risk management framework rests, and put us in position to execute our investment program in future periods of duress.”

See also 10 Tech Stocks Benefiting From The AI Boom and 10 Best Semiconductor Equipment Stocks to Buy.