In this article, we’ll explore the 10 Stock Picks That Could Change Your Investment Game According to Jim Cramer.
Tech Stocks Shine When Rates Are High but Struggle After Rate Cuts, Says Cramer
In a recent episode of Mad Money, Jim Cramer points out that tech stocks often perform well when the Federal Reserve maintains high interest rates and the economy slows down. However, when the Fed cuts rates, as it did recently, Wall Street shifts its focus to companies that can show significant earnings growth due to these lower rates. This may seem confusing, but in the stock market, cash is limited, and it’s currently flowing into companies that would struggle without the rate cuts. While many stocks initially rose after the cut, they couldn’t maintain those gains, leading to a market decline.
“The thing is, these tech stocks tend to be winners when the Fed keeps rates high and the economy slows. But when the Fed slams on the accelerator, as it did today, Wall Street bands together and piles into the companies that can post big earnings gains with much lower interest rates. Now, that may sound strange to you. Obviously, the real world makes no distinction between a company that does well all the time and one that does extremely well some of the time.
However, in the crazy world of the stock market, we only have so much cash to go around, and right now, it’s flowing into companies that would have been doomed in a world where the Fed didn’t start cutting rates. These companies have stocks that are much prized right now, so the money funnels into them. Everything else went up but couldn’t stay up after the rate cut. These did stay up; unfortunately, there aren’t enough of them to allow the averages to close in the black. That’s why we close in the red.”
Cramer questions whether all tech stocks are now weaker and suggests that not every company will suffer the same fate. He believes there are still standout stocks in the tech sector that can thrive regardless of economic conditions, even if they don’t perform well on days when the market dips. These companies help larger businesses operate more efficiently, and there’s always a demand for that kind of support, indicating that some tech players will continue to shine.
“So, is every player doomed to the same small part? Are the stocks of all tech companies weaker now? Can nothing transcend that status? Like when I went out for Bye Bye Birdie or Guys and Dolls in high school, I mean, first, no publicly traded company would ever be that low. I was totally expendable, other than as Lieutenant Rooney in ARS Gold Lace, where I don’t think I ever spoke more than a few words.
But there will be stocks that shine even in tech with rates coming down. However, we come out here to find legitimate stars that can thrive regardless of the economy, and they don’t do that well on days like today. Many of these outfits are about helping big companies do more with less, and there’s always demand for that. They’re not big players; you bring in these guys to bridge the gap and perform better with fewer people.”
Jim Cramer: Artificial Intelligence (AI) Drives Profit Growth Despite Slowing Sales
Jim Cramer also highlights that artificial intelligence is a crucial factor in today’s market. Companies using AI can enhance their profit margins, increasing earnings even amid declining sales. This indicates that AI can drive profitability without needing to boost sales.
Our Methodology
This article summarizes Jim Cramer’s latest Mad Money episode, in which he analyzed several stocks. We selected 12 companies and ranked them by their ownership levels among hedge funds, beginning with those that are least owned and moving to those that are most owned.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Jim Cramer’s 10 Stock Picks That Could Change Your Investment Game
10. Iron Mountain Incorporated (NYSE:IRM)
Number of Hedge Fund Investors: 24
Jim Cramer expressed his views on Iron Mountain Incorporated (NYSE:IRM), stating that he was fond of the stock when it had yields of 5%, 4%, and 3%. However, he noted that with the yield now at 2.5%, he no longer feels as positive about it because Iron Mountain Incorporated (NYSE:IRM) has risen significantly, by 66%. Cramer suggested it’s time to look for other opportunities.
“Okay, I think Iron Mountain, which I liked when it had a 5% yield, when it had a 4% yield, and when it had a 3% yield, was good. Now, at 2.5%, I don’t like it as much; it’s had too big a move up—66%. Let’s move on.”
Iron Mountain Incorporated (NYSE:IRM) has a strong positive outlook, backed by its impressive Q2 2024 earnings, which exceeded analysts’ expectations due to significant revenue growth from increased demand for its storage and information management services. Iron Mountain Incorporated (NYSE:IRM)’s expansion into data center services is particularly promising, as businesses increasingly need secure storage solutions during their digital transformation.
Iron Mountain Incorporated (NYSE:IRM) is also diversifying beyond traditional storage by adding services like data management, IT asset disposition, and secure shredding. This broadens its revenue sources and reduces reliance on any one market. Recent strategic acquisitions have strengthened Iron Mountain Incorporated (NYSE:IRM) capabilities and expanded its customer base, creating synergies that should drive future growth.
Additionally, Iron Mountain Incorporated (NYSE:IRM)’s commitment to sustainability, through initiatives aimed at lowering its carbon footprint, enhances its reputation and aligns with the growing demand for environmentally responsible practices. Recent announcements about international market expansions and improved service offerings have positively impacted investor sentiment, reinforcing a strong outlook for Iron Mountain Incorporated (NYSE:IRM).
9. Walgreens Boots Alliance Inc. (NYSE:WBA)
Number of Hedge Fund Investors: 35
Jim Cramer also discussed Walgreens Boots Alliance Inc. (NYSE:WBA) in a recent segment of Mad Money, noting its limited downside potential. He pointed out that the stock can only drop by nine points, emphasizing that it won’t fall below zero. Cramer expressed hope for Walgreens Boots Alliance Inc. (NYSE:WBA)’s success, but highlighted the need for strategic spending. He suggested that Walgreens should invest in artificial intelligence to reduce costs and increase profits, following the innovative practices seen in other businesses.
“The great thing about Walgreens is it can only go down nine points. I know that’s kind of a subtle jab! Hey listen, it won’t go down 10—stocks stop at zero. I sure hope he pulls it off, but he’s got to start spending money in the way that we heard people do things out here—using artificial intelligence to cut some overhead and bring home more profit.”
Walgreens Boots Alliance Inc. (NYSE:WBA) has a strong positive outlook following its Q2 2024 earnings report, which showed better-than-expected performance with growth in both revenue and net income. Walgreens Boots Alliance Inc. (NYSE:WBA)’s strategic move into healthcare, including partnerships with providers and an increase in primary care services, positions it well to meet the growing demand for accessible healthcare.
Additionally, Walgreens Boots Alliance Inc. (NYSE:WBA) is speeding up its digital transformation by enhancing online pharmacy services and delivery options, which improves customer engagement and sales. Cost-saving initiatives aimed at boosting profit margins also strengthen its financial outlook. As a key player in the pharmacy and healthcare sectors, Walgreens Boots Alliance Inc. (NYSE:WBA) benefits from a wide network of stores, giving it a competitive edge in a changing market. Recent partnerships in telehealth have further improved market sentiment, providing a solid foundation for future growth.
Ariel Appreciation Fund stated the following regarding Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q2 2024 investor letter:
“Alternatively, shares of retail drugstore operator, Walgreens Boots Alliance, Inc. (NASDAQ:WBA), underperformed following an earnings miss and significant reduction to full year guidance, largely due to continued weakness in its U.S. retail business. In response, management announced a multi-year plan for the U.S. business to reduce the retail footprint, invest in the customer experience, align the retail and healthcare businesses for enhanced go-to-market capabilities and simplify the healthcare portfolio.
Meanwhile, the company continues to execute on its cost savings initiatives to optimize profitability and is using excess capital to prioritize the sustainability of its operations and balance sheet. Over the medium-term, we expect a re-rating in shares as WBA’s new CEO rebuilds the leadership team and earns credibility by executing on previously articulated strategic imperatives as well as margin.”
8. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Investors: 44
Jim Cramer described also Palantir Technologies Inc. (NYSE:PLTR) as a speculative and meme stock that gains momentum as individual investors keep buying in. He noted that it doesn’t function like a traditional stock; instead, it serves more as a measure of enthusiasm for a business that may or may not be performing well. Cramer expressed a desire for Palantir Technologies Inc. (NYSE:PLTR) to have more solid fundamentals behind it.
“Well, Palantir is a meme stock; it has momentum because individual investors keep piling into it. It’s not really even a stock in the traditional sense; it’s just a barometer of enthusiasm for some business that may or may not be doing well. I wish there were more to it.”
Palantir Technologies Inc. (NYSE:PLTR) has a strong positive outlook, supported by its impressive Q2 2024 earnings, which showed significant revenue growth driven by increased government and commercial contracts. Palantir Technologies Inc. (NYSE:PLTR) reported expanding profit margins and improved cash flow, indicating effective operations. As demand for data-driven decision-making grows, Palantir Technologies Inc. (NYSE:PLTR)’s advanced analytics platform is well-positioned to capture this expanding market, with applications in defense, healthcare, and finance.
The successful growth of its commercial client base helps reduce reliance on government contracts, boosting long-term growth potential. Palantir Technologies Inc. (NYSE:PLTR) is also innovating with recent improvements to its Foundry and Gotham platforms, which aim to enhance user experience and functionality, attracting new customers. Strategic partnerships with leading technology firms strengthen its capabilities in AI and machine learning, improving its competitive edge. Recent announcements about new contracts and innovative product launches have positively impacted investor sentiment, reinforcing a strong outlook for Palantir Technologies Inc. (NYSE:PLTR).
7. PG&E Corporation (NYSE:PCG)
Number of Hedge Fund Investors: 46
Jim Cramer expressed strong support for Patty Poppe, the CEO of PG&E Corporation (NYSE:PCG), emphasizing that he believes in the company despite any rate increases. He stated that he is committed to backing PG&E Corporation (NYSE:PCG), indicating confidence in its potential for success.
“We’ve been behind Patty Poppe, PCG’s CEO, and we are not going to get off that horse. No way! That stock is a good one, rate increase or not.”
PG&E Corporation (NYSE:PCG)’s positive outlook is backed by its strong Q2 2024 earnings, which exceeded analyst expectations and showed significant revenue growth along with improved operational efficiency and a stable financial situation. PG&E Corporation (NYSE:PCG) is investing heavily in infrastructure upgrades to improve reliability and safety, addressing past challenges and reducing wildfire risks, which boosts investor confidence.
PG&E Corporation (NYSE:PCG) is committed to transitioning to renewable energy, aligning with California’s climate goals. Investments in solar and wind projects are expected to drive long-term growth. Recent regulatory changes have also given PG&E Corporation (NYSE:PCG) more financial flexibility, including approved rate increases to fund infrastructure improvements and manage past liabilities, which are crucial for stability and growth.
As California pushes for cleaner energy and grid modernization, PG&E Corporation (NYSE:PCG) is well-positioned to meet the growing demand for sustainable energy solutions, enhancing its market opportunities. Recent announcements about new renewable energy projects and favorable regulatory decisions have further improved market sentiment, solidifying a strong outlook for PG&E Corporation (NYSE:PCG).
6. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Investors: 64
Jim Cramer shared that he often hears people urging him to move away from T-Mobile US, Inc. (NASDAQ:TMUS), but he believes there’s no reason to do so as long as the stock continues to perform well. He emphasizes his commitment to staying invested in T-Mobile US, Inc. (NASDAQ:TMUS), seeing it as a winning choice.
“People are telling me, “Jim, get on that horse, get off the T-Mobile horse.” I don’t want to get off a horse if that horse is winning!”
T-Mobile US, Inc. (NASDAQ:TMUS) has a positive outlook, backed by strong Q2 2024 earnings that exceeded analyst expectations, showing significant revenue growth and net customer additions, especially in the postpaid segment. As a leader in the 5G market, T-Mobile US, Inc. (NASDAQ:TMUS)’s extensive coverage and ongoing network improvements are likely to drive further customer growth and enhance its service offerings, giving it an advantage over competitors.
The consistent increase in postpaid customers reflects effective marketing strategies and high customer satisfaction, which contribute to stable revenue and a strong subscriber base. T-Mobile US, Inc. (NASDAQ:TMUS) is also innovating with new service plans, including bundled home internet services, which attract new customers and enhance loyalty among existing ones.
Strategic partnerships with technology companies to improve digital services further strengthen T-Mobile US, Inc. (NASDAQ:TMUS)’s competitive position, particularly in integrating mobile and home broadband solutions. Recent announcements about 5G expansions and partnerships aimed at enhancing digital offerings have also created positive sentiment regarding T-Mobile US, Inc. (NASDAQ:TMUS)’s growth potential.
5. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Investors: 83
Jim Cramer expressed confidence in Wells Fargo & Company (NYSE:WFC), describing it as a strong performer. He acknowledges the concerns many have but emphasizes his trust in CEO Charlie Scharf, comparing him to a skilled coach who knows how to navigate tough situations. Cramer believes Wells Fargo & Company (NYSE:WFC) will continue to succeed and expects its stock to rise further, potentially reaching the $61-$62 range. He encourages investors to hold on to their shares and appreciates their membership in his investment community.
“Well, Wells Fargo is a winner, though. Okay, let me tell you, I hear you and I feel exactly what you’re feeling, but I am a believer in Charlie Scharf. He happens to be a head coach who knows exactly what to do with two minutes and one minute left. He would never be fooled by what you saw on the field that Monday night. I think Wells comes through this fine; it’s up 10%, and I think it’s going to go higher. It can go back to 61-62. Let’s hold on to it. Thank you for being a member of the club!”
Wells Fargo & Company (NYSE:WFC) has a positive outlook, supported by its strong Q2 2024 earnings that exceeded expectations due to solid growth in net interest income and lower loan loss provisions, which indicate improving credit quality and a favorable interest rate environment. Wells Fargo & Company (NYSE:WFC)’s focus on cost efficiency and operational improvements is expected to enhance profit margins and overall financial performance.
With a robust balance sheet marked by strong capital and liquidity, Wells Fargo & Company (NYSE:WFC) is also working on improving asset quality and reducing non-performing loans, which boosts investor confidence. Additionally, Wells Fargo & Company (NYSE:WFC) is diversifying its revenue by strengthening its wealth management and investment banking divisions, reducing its reliance on traditional lending.
As the economy continues to recover, Wells Fargo & Company (NYSE:WFC) is well-positioned to benefit from increased lending activity, and potential rising interest rates could further improve its net interest margins. Recent updates about regulatory approvals and initiatives to restore Wells Fargo & Company (NYSE:WFC)’s reputation have also positively affected market sentiment, creating a strong outlook for the company.
4. Workday Inc. (NYSE:WDAY)
Number of Hedge Fund Investors: 86
Jim Cramer noted that the Federal Reserve recently reduced interest rates by 50 basis points. He explained that while this move could benefit businesses, it won’t automatically guarantee success for Workday. Instead, he believes Workday’s ability to innovate and outsmart its competitors will be the key to its growth.
“Right now, the Federal Reserve has just cut rates by 50 basis points. While this can help businesses, it won’t necessarily drive Workday’s success. Workday will thrive by being innovative and smarter than competitors.”
Workday Inc. (NYSE:WDAY) has a positive outlook, supported by strong Q2 2024 earnings that exceeded analysts’ expectations for both revenue and earnings per share. This reflects the increasing demand for its cloud-based HR and financial management solutions. As businesses accelerate their digital transformation, Workday Inc. (NYSE:WDAY) is well-positioned to gain market share, particularly with the growing need for integrated, cloud-based solutions in hybrid work environments.
Workday Inc. (NYSE:WDAY) continues to innovate, enhancing its Human Capital Management and Financial Management platforms with new AI-driven features that improve customer satisfaction. Strategic partnerships with leading technology firms further enhance its offerings, making Workday Inc. (NYSE:WDAY) an attractive choice for companies seeking operational efficiency.
Additionally, strong customer retention rates, successful upselling to existing clients, and new acquisitions in the mid-market segment contribute to its growth potential. Recent announcements about strategic acquisitions and partnerships aimed at boosting AI capabilities have also generated positive sentiment about Workday Inc. (NYSE:WDAY) ‘s future prospect.
Baron Technology Fund stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its Q2 2024 investor letter:
“Workday, Inc. (NASDAQ:WDAY) is a leading cloud human capital and financial management software vendor. The stock detracted from performance after it reported an “in-line” subscription revenue quarter, which marked the second quarter in a row of weaker-than-expected bookings growth (quarter-over-quarter change in 12-month current revenue performance obligations + subscription revenues), with bookings decelerating to 13% the fourth quarter of fiscal year 2024 and 12% in the first quarter of fiscal year 2025. Management noted it saw extended deal cycles and customers committing to lower headcount on renewals.
In our view, Workday either needs to be able to reaccelerate growth or show greater margin expansion (it is tracking about 500 basis points below its closest peers, which are delivering close to 30% adjusted operating margins vs. about 25% for Workday). Given the current headwinds around IT budgets – namely, the ability for back office digital transformation projects to sustain priority amidst AI projects that tend to focus on the front office – and the company’s tardy margin expansion, we decided to exit the remainder of the position (we had trimmed it after our visit to Workday’s headquarters in the March quarter). We will revisit the name if we gain greater conviction in either faster growth or an updated target model that incorporates more operating leverage.”
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Investors: 108
Jim Cramer pointed out that after a tumultuous year, Advanced Micro Devices, Inc. (NASDAQ:AMD), a favorite chip maker and a key part of his investment portfolio, is essentially unchanged for 2024. He noted that Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the few chipmakers competing with Nvidia in the artificial intelligence sector. Despite this, Advanced Micro Devices, Inc. (NASDAQ:AMD) has dropped about 80 points since its peak earlier this spring, leading Cramer to conclude that something isn’t quite right with the situation.
“After a roller coaster year, AMD, one of our favorite chip makers and a core holding in my travel trust, is basically flat for 2024. Remember, AMD is the only chipmaker that comes close to Nvidia in the artificial intelligence space, yet now the stock’s down roughly 80 points from its high this spring. Something’s wrong here.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) has a strong positive outlook, highlighted by its impressive Q2 2024 performance, which surpassed analyst expectations with significant revenue growth fueled by high demand in the data center and gaming markets. Advanced Micro Devices, Inc. (NASDAQ:AMD) has effectively increased its market share in the EPYC server processor segment, benefiting from the rising need for cloud computing and AI applications.
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s latest EPYC processors give it a competitive edge in high-performance computing, while the positive reception of its Radeon graphics cards shows its strong position in the gaming industry. Strategic partnerships with major cloud service providers enhance Advanced Micro Devices, Inc. (NASDAQ:AMD)’s market presence and create new revenue opportunities, especially in AI and machine learning.
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s ongoing focus on innovation and research and development helps it stay competitive in both CPU and GPU markets. Recent announcements about new product launches and collaborations in the AI sector have further boosted investor confidence, reinforcing a strong outlook for Advanced Micro Devices, Inc. (NASDAQ:AMD).
Baron Technology Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2024 investor letter:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global fabless semiconductor company focusing on high performance computing technology, software, and products including CPUs,9 GPUs, FPGAs,10 and others. Shares of AMD remain volatile, and after a strong run earlier in the year, the stock fell during the quarter as investors continue to wrestle with AMD’s competitive positioning in the AI compute market relative to NVIDIA, who continues to strengthen its full-system solution offerings at a rapid pace.
AMD also updated its MI300 GPU chip revenue expectations for the full year to “greater than $4 billion” vs. prior $3.5 billion, which disappointed the market a bit relative to high expectations. Over the long-term, we believe AMD, with its unique chiplet-based architecture and open-source software ecosystem, will play a meaningful role in the rapidly growing AI compute market, where customers don’t want to be locked into a single vendor and AMD offers a compelling total-cost-of-ownership proposition, especially in inferencing workloads.
Simultaneously, we believe AMD will continue to take share from Intel within traditional data center CPUs, which, while now a slower growth market, is likely to see a near-term refresh as data centers look for ways to improve energy efficiency and optimize existing footprints.”
2. Salesforce.com, inc. (NYSE:CRM)
Number of Hedge Fund Investors: 117
Jim Cramer expressed his doubts about many AI initiatives he has encountered, suggesting that they often repackage existing ideas rather than offer anything new. However, he sees Salesforce.com, inc. (NYSE:CRM)’s CEO, Marc Benioff’s Agent Force as a notable exception. Cramer believes this innovation has the potential to be genuinely different and highly profitable for both Salesforce and its customers.
“Mark Benioff has added many great products over the years, but he seems most proud of this one. So far, it hasn’t mattered to the stock; it’s only been out for a very short period of time, but a very high percentage of companies here at Dreamforce have already signed up for it. Ultimately, AI will end up doing many things.
I’m skeptical about many of the initiatives I’ve heard for AI; they tend to be old things that would have been done anyway, just being rebranded as AI. But with Marc’s Agent Force, I see something truly different and very lucrative for both Salesforce and its clients.”
Salesforce.com, inc. (NYSE:CRM)’s positive outlook is supported by its strong earnings in Q2 2024, which surpassed analysts’ expectations and highlighted significant revenue growth due to increasing demand for its cloud-based customer relationship management solutions. Salesforce.com, inc. (NYSE:CRM) has successfully acquired and expanded its customer base, solidifying its position as a market leader.
Salesforce.com, inc. (NYSE:CRM) is also making substantial investments in artificial intelligence, particularly with its new Einstein GPT, which adds generative AI features to its CRM platform, enhancing customer experiences and boosting operational efficiency. Furthermore, Salesforce.com, inc. (NYSE:CRM) is broadening its product lineup, including upgrades to its Marketing Cloud and better integration with Slack, allowing it to address a wider array of customer needs and drive long-term growth.
With a diverse customer base that includes many Fortune 500 companies, Salesforce.com, inc. (NYSE:CRM) enjoys high retention rates and increased spending from existing clients, contributing to steady revenue growth. As businesses focus more on digital transformation and improving customer engagement, Salesforce.com, inc. (NYSE:CRM) is well-equipped to take advantage of these trends. Recent strategic partnerships and new product launches have also strengthened investor confidence in Salesforce.com, inc. (NYSE:CRM)’s growth potential, leading to a favourable outlook for Salesforce.
Ithaka US Growth Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q2 2024 investor letter:
“Salesforce, Inc. (NYSE:CRM) is the largest pure-play cloud software company, holding a leading market share in customer relationship management applications and a top-five market share position in the company’s other clouds (Marketing, Service, Platform, Analytics, Integration, and Commerce). The company’s software subscription term-license model differs from the traditional perpetual-license software model in two respects:
(1) the software is hosted on centralized servers and delivered over the internet, as opposed to traditional enterprise software that is loaded directly onto customers’ hard drives or servers; and (2) the revenue model is subscription-based, typically charging monthly fees per user as opposed to charging one-time licensing fees. The stock’s weak relative performance followed its fiscal first quarter earnings announcement, where the company missed top-line and cRPO (current remaining performance obligations) estimates while also issuing weak forward guidance.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Investors: 179
Jim Cramer highlighted NVIDIA Corporation (NASDAQ:NVDA)’s ambition to create more powerful chips that can accomplish incredible tasks. He noted that NVIDIA Corporation (NASDAQ:NVDA) has already achieved significant breakthroughs in this field, showcasing its innovative capabilities.
NVIDIA Corporation (NASDAQ:NVDA)’s strong outlook is backed by its impressive Q2 2024 earnings, which exceeded analyst expectations and showed record revenue growth due to high demand for its GPUs in data centers and AI applications. As a leader in AI hardware and software,NVIDIA Corporation (NASDAQ:NVDA)’s GPUs are essential for training and running AI models, positioning the company for ongoing growth as AI adoption increases across industries.
NVIDIA Corporation (NASDAQ:NVDA) is also enhancing its product offerings with innovations like the Hopper and Grace architectures, which improve performance for AI and high-performance computing tasks. Strategic partnerships with major tech companies help NVIDIA Corporation (NASDAQ:NVDA) expand its influence in areas such as autonomous vehicles, cloud computing, and gaming.
With rising investments in AI and machine learning, analysts have raised their price targets for NVIDIA Corporation (NASDAQ:NVDA), reflecting positive expectations for its growth. Recent announcements about major contracts and advancements in AI technology have further boosted investor confidence, creating a strong bullish outlook for NVIDIA Corporation (NASDAQ:NVDA).
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA), 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 timeframe. 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.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
