5 Stocks Surging On Analyst Recommendations

1. Nvidia Corp (NASDAQ:NVDA)

Nvidia stock doesn’t really rely on analyst recommendations for a surge. But after a few bad days, Bernstein’s positive outlook on the stock has helped soothe investors’ nerves. Just yesterday, the White House introduced new rules to stop the sale of modern chips to China. Nvidia stands to lose business because of these restrictions, so the stock had a bad day.

Investors are also keeping a close eye on Nvidia’s troubles with the execution of its Blackwell GPUs. As much as the company keeps denying any issues, ramping up deliveries is a tough task, mainly because the equipment needed to support these GPUs is still not perfect.

Bernstein analysts believe these issues are only temporary. The sale of a certain type of Hopper GPUs to China, which the company introduced for the Chinese market by lowering the bandwidth available on the chips, is unlikely to be affected. So Nvidia’s existing business is safe. Over the past few years, Nvidia’s reliance on its China revenue has gone down from 25% to 15%, which means the country is now less likely to be affected by a trade war between the two countries.

Nvidia is 5th on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 193 hedge fund portfolios held NVDA at the end of the third quarter which was 179 in the previous quarter. While we acknowledge the potential of NVDA as a leading AI 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 as promising as NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.