We recently published a list of 17 Trending AI Stocks on Latest Analyst Ratings and News. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other trending AI stocks.
The AI industry continues to be highly dynamic, with significant growth anticipated across various sectors in 2024. The expansion of generative AI, which saw exponential growth in 2023, is expected to continue this year, potentially unlocking trillions of dollars in value as businesses move from pilot projects to broader implementation. This shift suggests that 2024 will be a pivotal year for AI as companies aim to leverage capabilities more fully to drive efficiency, reduce costs, and innovate across different industries. The market for generative AI is forecasted to grow rapidly, with a compound annual growth rate of close to 60%, reaching a valuation of around $37 billion by 2028. This growth is fueled by the widespread adoption of AI technologies in areas such as healthcare, finance, and customer service.
Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.
The AI revolution is already transforming operations across the world by automating tasks, analyzing large datasets, and enhancing predictive capabilities. The healthcare sector, for example, is poised for substantial advancements due to AI, with the market expected to grow to around $188 billion by 2030, driven by innovations in genomics, drug discovery, and personalized medicine. Edge computing is another area likely to see significant development in 2024, as it becomes increasingly critical for enabling AI applications that require real-time data processing. The move towards edge computing, where data is processed closer to the source, is expected to reduce latency and improve the performance of AI systems, particularly in sectors like autonomous vehicles, IoT, and industrial automation.
This trend underscores the growing importance of a robust semiconductor supply chain, especially as global trade tensions and geopolitical events continue to impact the availability of critical components like chips. Experts also emphasize the growing importance of ethical considerations and responsible AI. As AI technologies become more deeply embedded in various aspects of society, concerns around privacy, bias, and security are likely to intensify, prompting calls for clearer regulatory frameworks and guidelines to ensure that AI is developed and deployed responsibly. The rapid growth will also bring challenges related to talent acquisition, supply chain management, and the need for responsible AI practices. As such, the industry is likely to be marked by both tremendous opportunities and complex challenges in the near term.
Read more about these developments by accessing Billionaire Stan Druckenmiller Is Betting On AI Infrastructure, Tobacco and Industrial Stocks and 10 Tech Stocks to Monitor Amid Market Volatility According to Bernstein Analyst.
Our Methodology
For this article, we selected AI stocks based on the latest news and analyst ratings. These stocks are also popular among hedge funds. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close up of a circuit board, its microchips creating a powerful computing system.
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. The company recently posted earnings for the second quarter of 2024, beating market expectations on earnings per share and revenue by $0.04 and $1.3 billion respectively. The guidance numbers for the third fiscal quarter also topped expectations. Multiple concerns about the production ramps of Blackwell, the latest AI chips being marketed by the firm, were also addressed during the earnings call. The CFO revealed that the firm had shipped customer samples of the Blackwell architecture in the second quarter, and the production ramp for the chip was scheduled to begin in the fourth quarter and continue into fiscal 2026.
Following the earnings call, Wall Street analysts have reiterated their bullish calls on NVIDIA Corporation (NASDAQ:NVDA) stock. Raymond James raised the price target on the stock to $140 from $120 and kept a Strong Buy rating, noting that Blackwell delays appeared better than feared and management was forecasting a strong ramp in Q4. The advisory further detailed that Hopper demand continued to be healthy with further growth expected in FQ4.
Overall, NVDA ranks 1st on our list of our list of trending AI stocks on latest analyst ratings and news. While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some 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 NVIDIA Corporation (NASDAQ: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 was originally published at Insider Monkey.