1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Investors: 179
Jim Cramer noted that Wall Street is expected to build on Wednesday’s strong performance, following a midday reversal. On the previous day, NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang boosted the market by highlighting high demand for Nvidia’s AI chips and promoting the company’s bright outlook. NVIDIA Corporation (NASDAQ:NVDA), a long-standing member of the Investing Club’s portfolio, will be a topic of discussion at the September Monthly Meeting, starting at noon ET.
At a Goldman Sachs conference, Huang described the demand for NVIDIA Corporation (NASDAQ:NVDA)’s upcoming Blackwell chip platform as extremely high, with many eager to be the first to get it. This led to NVIDIA Corporation (NASDAQ:NVDA)’s shares rising 8% during the session.
“Wall Street on Thursday is on track to extend Wednesday’s robust gains following an intraday reversal. Nvidia CEO Jensen Huang ignited the market in the prior session after talking up demand for its AI chips and touting the company’s bright future. We’ll discuss Nvidia, a longtime Club holding, and the rest of our Investing Club portfolio at our September Monthly Meeting, which kicks off at noon ET.
Demand for Nvidia’s next-generation Blackwell chip platform is “so great, and everybody wants to be first,” Jensen said at a fireside chat at a Goldman Sachs conference Wednesday. Shares soared 8% in that session. Jensen also made a compelling case that the value proposition of AI chips overwhelmingly favors Nvidia, something that really resonated with us at the Club. Jensen’s comments were a real death rattle for Intel, by the way.”
NVIDIA Corporation (NASDAQ:NVDA) is a strong investment prospect due to its leadership in AI and GPU markets, rapid revenue growth, and advancements in computing technology. In its latest earnings report, NVIDIA projected over 107% year-over-year revenue growth, potentially reaching $28.6 billion in fiscal Q2 2024. Analysts are bullish on the stock, with firms like Evercore ISI and Wedbush forecasting a potential 20% increase in its price.
NVIDIA’s dominant market share of 70-80% in AI chips, along with its growing footprint in cloud gaming and data centers, positions it for sustained growth. With an expected annual growth rate of 38% over the next five years, the company’s revenue could climb to $108 billion by 2026. This growth is largely driven by its leadership in AI hardware, a market expected to expand to $300 billion annually by 2027. The combination of market dominance and strong future demand makes NVIDIA a highly attractive investment.
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.
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