We recently published a list of Top 10 AI News Everyone is Talking About. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other top AI news everyone is talking about.
Jim Cramer in a latest program on CNBC talked about the ongoing “rebellion” against the data center and the impact of tariffs on the broader market. Cramer said that data centers have been a key story in the stock market for months but now it’s losing steam due to a variety of factors. He also mentioned the weakening economic indicators.
“I know these tariffs have people on edge. Consumer confidence indicators have just plummeted. Interest rates are sinking for fear of an economy gone soft. The key 10-year Treasury yield is back to where it was in mid-December when many thought we were looking at many more rate cuts than we’ve gotten. We have had to put rate cuts talk on hold. Now it’s right back because there’s a newfound paralysis—too many things happening at once, scaring people.”
Cramer said that the “seeds of doubt” about data center chip demand were sown following the launch of DeepSeek and the market is still reeling from its effects.
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For this article we picked 10 AI stocks the market is buzzing about these days. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Investors: 193
A few weeks ago, Jim Cramer was asked on CNBC about his thoughts on the launch of DeepSeek and its consequences on the broader chip demand. Cramer said he would prefer if Jensen Huang would “talk” more about the situation and provide details.
“Alex Karp… he just did an incredibly long interview with Sarah, and you could say that if he can speak at length about broader themes of Palantir, then Jensen should be able to do the same—especially in a situation where his stock has seen a material movement.”
Jensen Huang finally broke his silence about DeepSeek a few days back and said the market misunderstood the importance of the technology. He believes AI computing demand will remain strong because post-training remains the key to AI technology.
Infuse Asset Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“We do still own some NVIDIA Corporation (NASDAQ:NVDA) as the forward multiple isn’t egregious and it powers over 90% of AI workloads. This company is only becoming increasingly important though the hyperscalers are actively trying to save money through their own ASIC programs. The moat CUDA provides has been underestimated time and time again. While I don’t think Nvidia has quite the upside as some of the other companies in the portfolio, it has a product that the best companies in the world literally can’t get enough of.”
Overall, NVDA ranks 4th on our list of top AI news everyone is talking about. While we acknowledge the potential of NVDA as investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than 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 is originally published at Insider Monkey.
