Analysts Are Talking About These 10 AI Stocks

3. Nvidia Corp (NASDAQ:NVDA)

Number of Hedge Fund Investors: 223

Joshua Brown, the CEO and Co-founder of Ritholtz Wealth Management, said while talking to CNBC following the DeepSeek-triggered selloff that the Chinese breakthrough will increase the usage of AI. However, he believes the chances of major companies using the Chinese model for their Cloud operations are thin. Overall, Brown believes the hype around the potential impact of DeepSeek on Nvidia Corp (NASDAQ:NVDA) was overdone.

“Most of this conversation about the impact of deep seek is happening on Twitter. If you know anything about Twitter—X—if you know anything about X, you know it’s loaded with hedge fund managers and asset managers who absolutely loathe the Mag 7. They’ve been waiting for this moment for two years. These stocks, Nvidia in particular, have been making them look bad for 24 straight months, and they’re dying for this moment where small caps are up, Europe is flat, value stocks are outperforming growth. They view this as comeuppance for the people who have been riding these giant tech stocks to huge gains. I think because there’s that desire to see these investors get beaten up a little bit, maybe that’s why some of the rhetoric about this being the end of Nvidia is getting so overdone.”

Mairs & Power Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:

“We prefer to invest in our backyard, as Minnesota and the Upper Midwest are blessed with a rich and diverse business community. As such, seven out of our 10 largest relative bets are based in our region (MN, WI, IA, SD, ND, IL). That said, we are unafraid to look beyond our geographic area if we find exceptional opportunities. In 2019, we found such an opportunity in a graphics processing technology company called NVIDIA Corporation (NASDAQ:NVDA). At the time, we felt NVIDIA would be a good way to leverage the growing interest in video games, as most of its chips were popular amongst “gamers” to enhance graphics. But what really grabbed our interest was its smaller, albeit faster-growing, data center business that was positioned to benefit from the emergence of high-performance computing, such as deep learning and machine learning, and the related field of AI. The rest, as they say, is history. NVIDIA is one of a number of Technology holdings that we have added over the past decade, which has raised eyebrows since our Firm was well-known for avoiding the Tech Bubble in the late 1990s. Unlike the dot-com companies that operated at the turn-of-the-century, many of today’s technology companies are established businesses with significant cash flows. We have argued, and continue to argue, that many of these investments are perfectly aligned with our investments process in that they embody durable competitive advantages, above-average growth prospects, and excellent management teams.”