In this article, we’ll explore Jim Cramer’s Ultimate Stock Picks: 10 Hot Stocks to Consider.
In a recent episode of Mad Money, Jim Cramer emphasized the unexpected strength in the market, pointing out that many companies are doing better than Wall Street realizes. He suggests that investors should stop second-guessing these companies every time negative news surfaces. Cramer praises the excellent management and execution by CEOs, which he feels often goes unappreciated.
“Suddenly, all is forgiven, or if not all, then at least most. I’m talking about the incredible resilience in this market, buoyed by a recognition that many companies are simply better than Wall Street gives them credit for. We need to stop turning against them every time there’s a seemingly bad data point. Every day I come to work, I’m dazzled by the resourcefulness of executives who do their best to create value for you, the shareholder. Lots of stocks went up on days like today when the Dow advanced 335 points, the S&P gained 75%, and the NASDAQ jumped 1.0%, all thanks to good management and excellent execution that often goes unnoticed.”
Jim Cramer acknowledges that while some CEOs might warrant skepticism, many are truly exceptional and deserve more recognition for their efforts. He criticizes the overemphasis on short-term economic indicators, arguing that great companies stay focused and aren’t thrown off by minor fluctuations.
“Listen, I’m not a pushover. I can hit CEOs with tough questions when needed, some of them deserve skepticism and scorn. But there are also plenty of brilliant, hardworking CEOs with incredible teams, and you ignore their hustle at your own peril. This often gets lost in the shuffle when we’re focused on the parlor game of guessing the Fed’s next move, a quarter point, half a point, quarter, half. You know what I say? Let’s get serious. Terrific companies don’t get caught up in that quarter-half shuffle.”
Cramer highlights Kroger CEO Rodney McMullen as an example of strong leadership. Despite facing challenges like opposition to its acquisition of Albertsons and a tough economic climate, McMullen has successfully managed to keep food costs down. Through strategies such as an effective loyalty program and improvements to regional stores, the company has performed well. After a strong earnings report, the stock rose more than 7%, reflecting a successful turnaround.
“CEO Rodney McMullen has managed to keep food costs down and deliver fantastic numbers, all while maintaining an expensive, unionized labor force in a very uncertain commodity environment. How? The company confounded critics by developing a superior loyalty program, regionalizing their stores, and creating some of the best private-label products out there, second only to Costco. Food is still expensive, but cooking at home is far cheaper than dining out. McMullen tells us that consumers are no longer flush with cash, especially his most budget-conscious clientele. He notes, “Budget-conscious customers are buying more at the beginning of the month to stock up on essentials, and as the month progresses, they become more cautious with their spending.”
Wow, that’s a tough environment! When I heard this, I thought back to the old company, the one that used to miss its numbers whenever the environment got a little tough. Everybody else remembers the old company too, which is why the stock was just sitting there waiting to be picked up, until this quarter’s report, after which it soared more than 7% in response to the fabulous results. Everyone thought the company would drop the ball, as they used to, but McMullen has finally whipped his supermarket into shape.”
In contrast, Cramer points out that the tech industry often suffers from misunderstandings due to its complex nature. He believes that Wall Street analysts frequently fail to appreciate the expertise and potential of tech CEOs who have a deep grasp of their businesses.
“We all need to eat, so it’s not hard to understand the grocery business. But it’s quite different when it comes to tech, where analysts constantly doubt the resolve and expertise of CEOs who simply know more about their businesses than the critics. In tech, the complexity often leads Wall Street to conclusions that have little to do with reality.”
Our Methodology
This article reviews a recent edition of Jim Cramer’s Morning Thoughts, where he covered different stocks. We have selected and analyzed the ten most notable companies mentioned, ranking them according to how much they are owned by hedge funds, from the least owned to the 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 Ultimate Stock Picks: 10 Hot Stocks to Consider
10. Darden Restaurants Inc. (NYSE:DRI)
Number of Hedge Fund Investors: 27
Jim Cramer notes that analysts at Stephens have reduced their price target for Darden Restaurants Inc. (NYSE:DRI), the parent company of Olive Garden, from $165 to $159 per share. For those interested in investing in restaurant stocks, it might be wise to consider other options.
“Analysts at Stephens lowered their price target on Olive Garden owner Darden Restaurants to $159 a share from $165. Investors in search of restaurant stocks need to look elsewhere.”
Darden Restaurants, Inc. (NYSE:DRI) presents a strong investment opportunity due to its excellent financial performance, strategic expansion, and favorable analyst outlook. In Q1 2024, Darden Restaurants, Inc. (NYSE:DRI) reported earnings per share (EPS) of $1.78 and revenues of $2.73 billion, both surpassing Wall Street expectations and showing an 11.4% year-over-year increase. This growth is driven by strong consumer demand across its brands, including Olive Garden and LongHorn Steakhouse.
Darden Restaurants, Inc. (NYSE:DRI) expects continued revenue growth due to steady same-store sales and easing inflation pressures. Darden Restaurants, Inc. (NYSE:DRI)’s successful acquisition and integration of Ruth’s Chris Steak House highlight its ability to expand and add value while managing expenses effectively. Analysts are optimistic, with Truist Securities raising their price target and predicting nearly 10% earnings growth over the next year, with an EPS estimate of $9.47 for fiscal 2025.
9. CAVA Group Inc. (NYSE:CAVA)
Number of Hedge Fund Investors: 33
Jim Cramer suggests now is the right time to invest in CAVA Group Inc. (NYSE:CAVA). On Thursday night’s episode of Mad Money, Cramer interviewed CAVA Group Inc. (NYSE:CAVA) CEO Brett Schulman, who shared exciting expansion plans for the fast-casual Mediterranean restaurant chain.
“It is time to buy Cava. I had Cava CEO Brett Schulman on “Mad Money” Thursday night, and he detailed compelling expansion plans for the fast-casual Mediterranean chain.”
CAVA Group, Inc. (NYSE:CAVA) presents a strong investment opportunity due to its impressive financial performance, strategic expansion, and positive long-term outlook. In Q2 2024, CAVA Group, Inc. (NYSE:CAVA) achieved $233.5 million in revenue, a 35% increase from the previous year, surpassing the expected $219.47 million. CAVA Group, Inc. (NYSE:CAVA) also reported earnings per share (EPS) of $0.17, exceeding estimates, and generated $22.7 million in free cash flow, reflecting strong operational efficiency and a successful response to the growing demand for healthier, Mediterranean-inspired dining.
CAVA Group, Inc. (NYSE:CAVA)’s aggressive expansion strategy, which included adding 18 new locations in Q2 and plans to open 54-57 more by the end of the year, supports further growth and cost advantages. CAVA Group, Inc. (NYSE:CAVA)’s same-store sales growth of 14.4% highlights the success of its existing outlets. Analysts forecast an 18.6% increase in earnings over the next year, emphasizing CAVA Group, Inc. (NYSE:CAVA)’s strong market position and appeal to health-conscious consumers.
Next Century Growth Small Cap Strategy stated the following regarding CAVA Group, Inc. (NYSE:CAVA) in its first quarter 2024 investor letter:
“CAVA Group, Inc. (NYSE:CAVA) is a fast casual restaurant chain serving authentic Mediterranean cuisine, featuring customizable bowls and pitas. CAVA currently owns and operates >300 stores, and the company targets a 15% plus new store growth rate. The intermediate goal is to have 1,000 stores by 2032 with plenty of opportunity to grow beyond that level.
The company already delivers solid restaurant level margins >20% and they believe 3-5% same store sales growth is achievable over time. As the business matures, they should be able to leverage G&A expense which should lead to strong earnings growth over many years.”
8. RH (NYSE:RH)
Number of Hedge Fund Investors: 39
Jim Cramer highlights that RH (NYSE:RH), known for its luxury home furnishings, has had an impressive quarter, with its shares rising nearly 20%. RH (NYSE:RH) reported better-than-expected revenues, earnings per share, and profit margins. Executives also forecast that demand will grow faster through the end of this year and into 2025. According to Cramer, RH (NYSE:RH) stands to gain from increased housing sector activity driven by lower interest rates.
“RH is back with a great quarter. Shares are jumping nearly 20%. The maker of luxury home furnishings reported better-than-expected revenues, earnings per share and margins. Notably, executives said demand trends are expected to accelerate throughout the rest of the year and into 2025. This is another stock that benefits from more activity in the housing sector spurred by lower rates.”
RH (NYSE:RH) is an attractive investment due to its strong recent performance, focus on the luxury market, and positive future outlook. In Q2 2024, RH (NYSE:RH) reported earnings per share (EPS) of $1.69 and revenue of $829.66 million, surpassing analyst expectations and showing a 3.6% increase from the previous year. This performance highlights RH (NYSE:RH)’s resilience amid economic challenges.
RH (NYSE:RH)’s focus on high-end luxury home furnishings gives it a competitive edge, as this market is less affected by economic fluctuations, providing stability against inflation and higher interest rates. RH (NYSE:RH)’s premium positioning allows it to maintain strong profit margins despite broader economic pressures. Analysts are optimistic, with Citigroup raising its price target to $355, citing strong demand and effective operations.
Baron Discovery Fund stated the following regarding RH (NYSE:RH) in its first quarter 2024 investor letter:
“During the quarter, we added to our position in RH (NYSE:RH), a high-end retailer of home furnishings and furniture that has a unique vision to transform from a domestic furniture company to a global luxury brand. Shares were pressured in the earlier part of the quarter due to shorter-term concerns regarding demand amid a volatile macroeconomic environment.
Despite these short-term pressures, we remain confident in RH’s ability to gain market share in the fragmented high-end furnishings market, and we see a multi-year growth pipeline driven by store expansion around the globe. We also believe that RH will see improvements in profitability as the brand returns to a fuller-priced sales environment, and as it begins to scale its early international investments.”
7. The Boeing Company (NYSE:BA)
Number of Hedge Fund Investors: 42
Jim Cramer points out that The Boeing Company (NYSE:BA)’s shares are facing challenges after unionized workers in the Pacific Northwest voted strongly against a proposed contract. The potential strike by machinists could be expensive for The Boeing Company (NYSE:BA) and might push the company to raise additional capital. Cramer has expressed concerns about The Boeing Company (NYSE:BA)’s free cash flow situation.
“Boeing shares are under pressure after unionized factory workers in the Pacific Northwest overwhelmingly voted against a tentative contract. The machinists’ strike may prove costly and could be the last straw for Boeing needing to raise capital. I’ve been worried about Boeing’s free cash flow outlook.”
The Boeing Company (NYSE:BA)’s positive investment outlook is supported by its gradual recovery, growing demand for its commercial aircraft, and expected improvements in free cash flow (FCF). Despite supply chain issues, The Boeing Company (NYSE:BA) has seen rising demand for key models like the 737 MAX and 787. Deliveries of the 737 MAX are projected to increase from about 380 in 2023 to 535 in 2024, to reach 600 deliveries in the future. This strong demand is likely to boost revenue and expand The Boeing Company (NYSE:BA)’s market share.
The Boeing Company (NYSE:BA)’s free cash flow is also expected to improve significantly. The 737 MAX and 787 are anticipated to contribute $2.8 billion and $1.7 billion to FCF by 2025, respectively, providing financial flexibility for managing debt and funding growth. Although The Boeing Company (NYSE:BA) reported a GAAP loss per share of $2.33 in Q2 2024, its Global Services segment saw a 5% increase in revenue year-over-year, showing the company’s resilience.
Analysts are optimistic, with RBC upgrading the stock to “Outperform” and raising the target price to $275, indicating confidence in The Boeing Company (NYSE:BA)’s recovery and future potential. Despite some short-term challenges, The Boeing Company (NYSE:BA)’s improving production rates, strong demand, and significant free cash flow make it an attractive long-term investment.
6. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Investors: 59
Jim Cramer agrees with Baird’s recommendation to buy FedEx Corporation (NYSE:FDX) stock if it experiences any decline. Cramer believes FedEx Corporation (NYSE:FDX) is a strong investment, especially as the Federal Reserve is expected to start cutting interest rates.
“Baird told clients to buy FedEx stock on any weakness. I agree. This is a great stock to own as the Federal Reserve prepares to begin a rate-cutting cycle.”
FedEx Corporation (NYSE:FDX) presents a strong investment opportunity due to its solid financial performance, effective cost-saving strategies, and commitment to operational efficiency. FedEx Corporation (NYSE:FDX)’s recent earnings exceeded expectations, bolstered by its “DRIVE” initiative, which aims to save $4 billion by FY25. In fiscal Q4 2024, FedEx Corporation (NYSE:FDX) reported revenue of about $22 billion and adjusted earnings per share of $5.41, driven by strong performance in its Ground and Freight segments, even though Express faced some challenges.
FedEx Corporation (NYSE:FDX) has raised its earnings guidance for FY25 to $20 to $22 per share and plans to invest $5.2 billion in capital expenditures to improve its operations. FedEx Corporation (NYSE:FDX) has hit a three-year high, reflecting strong investor confidence. Additionally, FedEx Corporation (NYSE:FDX) is boosting shareholder value with a $2.5 billion share repurchase program and a 10% increase in its dividend.
With its focus on cost efficiency, operational improvements, and returning value to shareholders, FedEx Corporation (NYSE:FDX) is well-positioned for continued growth, making it an attractive investment.
Longleaf Partners Fund stated the following regarding FedEx Corporation (NYSE:FDX) in its Q2 2024 investor letter:
“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx was the top contributor for the quarter. Late in the quarter, FedEx reported strong fiscal year results, highlighting a year of strong cost management in a challenging revenue environment. Earnings per share (EPS) increased by 19%, and reduced capital expenditures narrowed the gap between EPS and FCF per share.
With the increase in FCF, the company has become a significant share repurchaser, which is a welcome change. The company also announced a strategic review of their Freight segment. Our appraisal has long accounted for the underappreciated value in FedEx’s less-than-truckload operations. A potential spin-off or sale could unlock substantial value, as comparable companies like Old Dominion trade at significantly higher multiples on revenue, cash flow, and earnings than those applied to FedEx Freight by the market and our appraisal today.”
5. The Home Depot Inc. (NYSE:HD)
Number of Hedge Fund Investors: 86
Jim Cramer highlights The Home Depot Inc. (NYSE:HD) as another stock that could benefit from the Federal Reserve’s upcoming rate cuts.
“Another stock that fits the Federal Reserve’s rate-cutting cycle: Home Depot. At Thursday’s Club meeting, we took an in-depth look at why we started a position.”
The Home Depot, Inc. (NYSE:HD) offers a promising investment opportunity due to its strong earnings, strategic market position, and favorable economic conditions. The Home Depot, Inc. (NYSE:HD) recently reported better-than-expected Q2 2024 earnings, with EPS of $4.67 and revenue of $43.18 billion, exceeding analyst forecasts despite rising costs and inflation. Although The Home Depot, Inc. (NYSE:HD)’s annual revenue guidance for FY 2024 is slightly below expectations, it remains solid given the current economic climate.
Analysts are optimistic about The Home Depot, Inc. (NYSE:HD)’s future, especially if the Federal Reserve lowers interest rates, which could increase consumer spending on home improvements and boost renovation demand. Additionally, The Home Depot, Inc. (NYSE:HD)’s strong presence in the professional market gives it a competitive edge by capturing high-margin business from contractors. The Home Depot, Inc. (NYSE:HD)’s dividend yield of around 2.56% adds appeal for income-focused investors.
With its robust financial performance, strategic advantages, and potential benefits from improving economic conditions, The Home Depot, Inc. (NYSE:HD) is well-positioned for continued growth, making it an attractive investment.
Polen Focus Growth Strategy stated the following regarding The Home Depot, Inc. (NYSE:HD) in its Q2 2024 investor letter:
“In the second quarter, the top relative contributors to the Portfolio’s performance were all names we do not hold: The Home Depot, Inc. (NYSE:HD), Meta Platforms, and AbbVie. With Home Depot, much of the quarter’s weakness came in April, as a higher-than-expected inflation reading caused investors to question the likelihood of imminent rate cuts in 2024. Given Home Depot’s sensitivity to interest rates, as it relates to home improvement projects, the stock sold off in the period.”
4. Ge Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Investors: 92
Jim Cramer highlights that Ge Vernova Inc. (NYSE:GEV), the spin-off of General Electric’s energy division that began trading separately in April, is seeing an increase in price targets. JPMorgan has raised its target from $216 to $240 per share, while Morgan Stanley has adjusted its target from $220 to $256. Cramer notes that Ge Vernova Inc. (NYSE:GEV) closed at $215.27 on Thursday, marking its fourth consecutive record high.
“More price-target bumps for GE Vernova , the spin-off of General Electric’s energy business that started trading on its own in April. The latest are from JPMorgan, which went to $240 a share from $216, and Morgan Stanley, which went to $256 from $220. Thursday’s close of $215.27 was the stock’s fourth record high in a row. Is GE Vernova best in show?”
Ge Vernova Inc. (NYSE:GEV) is an attractive investment due to its key role in the energy transition market, strong financial performance, and rising demand for clean energy solutions. Ge Vernova Inc. (NYSE:GEV) reported robust Q2 2024 results, with net income of $1.28 billion and revenue of $8.2 billion, driven by growth in its Electrification and Power divisions. Ge Vernova Inc. (NYSE:GEV) has increased its 2024 revenue forecast to between $34 billion and $35 billion and expects an adjusted EBITDA margin of 5-7%, reflecting improved operations and cost management.
As a leading player in the global shift toward clean energy, particularly in wind power and electrification, Ge Vernova Inc. (NYSE:GEV) is well-positioned to benefit from the growing demand for cleaner energy. Favorable market conditions, such as strong demand for power equipment and a focus on profitable areas within its wind business, further boost its prospects. These factors, along with the overall trend toward sustainable energy, make Ge Vernova Inc. (NYSE:GEV) a compelling long-term investment.
Carillon Eagle Mid Cap Growth Fund stated the following regarding GE Vernova Inc. (NYSE:GEV) in its Q2 2024 investor letter:
“GE Vernova Inc. (NYSE:GEV) is a global electric power company that was recently spun out of a much larger industrial conglomerate. The company’s shares performed well in their first quarter as a standalone company, primarily as a result of the increasing outlook for power demand growth, both domestically and abroad. We believe GE Vernova is well positioned to capitalize on this growing trend across its various products and services, but most notably within its large-scale gas turbine equipment and related services, as well as in its high-voltage electrical transmission products.”
3. Oracle Corporation (NASDAQ:ORCL)
Number of Hedge Fund Investors: 93
Jim Cramer highlights Oracle Corporation (NASDAQ:ORCL)’s impressive progress in a recent Morning Thoughts post. After Oracle Corporation (NASDAQ:ORCL) announced excellent results for the first quarter of fiscal 2025, which caused its stock to rise, Oracle’s executives projected that revenue for fiscal 2026 will reach at least $66 billion. This is higher than the $64.5 billion that analysts had expected. As a result, Oracle Corporation (NASDAQ:ORCL)’s shares are climbing, and many analysts are raising their price targets.
“Oracle’s amazing transformation continues. Just days after reporting strong fiscal 2025 first-quarter results that sent its stock soaring, executives guided for fiscal 2026 revenues of at least $66 billion, above the $64.5 billion consensus estimate. Shares are jumping Friday. Price target bumps are flooding in, too. Larry Ellison’s prediction that Oracle will one day operate at least 1,000 data centers, up from 162 currently, is looking more and more realistic.”
A positive outlook on Oracle Corporation (NASDAQ:ORCL) is supported by its strong growth in cloud services and strategic moves in AI, multi-cloud, and partnerships. In fiscal Q1 2024, Oracle Corporation (NASDAQ:ORCL)’s performance exceeded expectations, with cloud services and license support revenues increasing by 12% compared to the previous year. Total revenues for fiscal year 2024 reached $53 billion.
Oracle Corporation (NASDAQ:ORCL)’s Remaining Performance Obligations (RPO) jumped by 44%, indicating high demand for its AI-driven cloud solutions. Oracle Corporation (NASDAQ:ORCL)’s $12.5 billion in AI contracts, including a major deal with OpenAI, highlights its leading role in this field. Furthermore, Oracle Corporation (NASDAQ:ORCL)’s multi cloud strategy, supported by partnerships with Microsoft and Google Cloud, expands its market presence and strengthens its competitive edge.
Carillon Eagle Growth & Income Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q2 2024 investor letter:
“Oracle Corporation (NYSE:ORCL) stock rose to all-time highs after the company announced better than expected cloud infrastructure revenue. Oracle signed dozens of new customers, including two leaders in generative artificial intelligence. The backlog remains, and strong growth appears poised to accelerate.”
2. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Investors: 107
Jim Cramer reports that Adobe Inc. (NASDAQ:ADBE)’s stock is dropping because the company’s forecast for the current quarter was weaker than anticipated. The guidance provided was not very clear. Before the announcement, several analysts had raised their price targets for Adobe Inc. (NASDAQ:ADBE), but now some are starting to lower them.
“Adobe shares are tumbling after the software maker’s current quarter outlook was softer than expected. The guidance wasn’t really understandable. Multiple analysts had hiked their price targets ahead of the results. We’ve now seen a couple go the other way.”
Adobe Inc. (NASDAQ:ADBE) presents a strong investment opportunity due to its impressive financial performance, dominant market position, and promising growth in the AI sector. In Q3 FY 2024, Adobe Inc. (NASDAQ:ADBE) reported record revenues and a gross profit of $4.854 billion, largely driven by its subscription-based model, which accounts for over 90% of its income. Adobe Inc. (NASDAQ:ADBE) also boasts a 32% free cash flow margin and a 15% increase in adjusted EPS compared to the previous year, showcasing its financial health.
Adobe Inc. (NASDAQ:ADBE)’s strategic focus on AI, including its “Firefly” generative models and AI-powered tools like the Acrobat AI Assistant, is expected to drive significant revenue growth and improve profit margins. With a commanding 80% share in graphic design software and a strong presence in document processing, Adobe Inc. (NASDAQ:ADBE) is well-positioned to maintain its competitive edge.
Despite a recent drop in its share price, analysts view this as a buying opportunity, with price targets around $620 indicating potential for significant gains. Overall, Adobe Inc. (NASDAQ:ADBE)’s strong financials, market leadership, and growth potential in AI make it an attractive investment.
Polen Global Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q2 2024 investor letter:
“With Adobe Inc. (NASDAQ:ADBE), in some ways, we see it as a microcosm of the market’s “shoot first, ask questions later” approach to categorizing AI winners and losers. In the early part of last year, Adobe came under pressure with a perception that generative AI (GenAI) would represent a material headwind to their suite of creative offerings.
In short order, the company introduced its GenAI offering, Firefly, which shifted the narrative to Adobe as a beneficiary with a real opportunity to monetize GenAI in the near term. Earlier this year, that narrative was again challenged as the company reported a slight slowdown in revenue growth. Results in the most recent quarter were robust as the company raised its full-year forecast across a number of key metrics and showcased better-than-expected results.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Investors: 179
Jim Cramer shares that NVIDIA Corporation (NASDAQ:NVDA)’s new Blackwell chip platform has begun full-scale production, as CEO Jensen Huang revealed in an interview with CNBC’s Megan Cassella on Thursday, which took place outside the White House. Huang was there, along with other tech leaders and representatives from power and utility companies, to discuss the future of AI energy infrastructure in the US.
“Club holding Nvidia’s next-generation Blackwell chip platform is starting “full volume production,” CEO Jensen Huang told CNBC’s own Megan Cassella on Thursday outside the White House. Jensen, other tech executives, and leaders of power and utility companies were there for a meeting about the future of AI energy infrastructure in the U.S.”
NVIDIA Corporation (NASDAQ:NVDA)’s strong investment outlook is based on its leading position in AI and GPU markets, impressive revenue growth, and advancements in parallel computing. NVIDIA Corporation (NASDAQ:NVDA)’s latest earnings report predicts a revenue increase of over 107% year-over-year, potentially reaching around $28.6 billion in fiscal Q2 2024. Analysts are optimistic, with firms like Evercore ISI and Wedbush projecting more than 20% upside in NVIDIA Corporation (NASDAQ:NVDA)’s stock price.
NVIDIA Corporation (NASDAQ:NVDA)’s dominant 70-80% share of the AI chip market, along with its growing presence in cloud gaming and data centers, sets it up for continued success. NVIDIA Corporation (NASDAQ:NVDA) is expected to achieve a 38% annual growth rate over the next five years, with revenue possibly reaching $108 billion by 2026. This growth is driven by its leadership in AI hardware, a sector anticipated to reach a $300 billion annual market by 2027.
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 the ones on our list 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’.
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