We recently compiled a list of the Top 12 AI Stocks Taking Wall Street by Storm. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other AI stocks.
Is heavy regulation the right approach toward artificial intelligence? According to U.S. Vice President JD Vance, not quite. Instead, Vance is convinced that “massive” regulations on artificial intelligence could strangle the technology, rejecting content moderation as “authoritarian censorship”. On a similar note, the US and the UK have declined to sign the final statement of a recently held AI summit that said AI should be inclusive, open, ethical, and safe.
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With the AI arms race in full swing, countries appear to prioritize competition rather than safety and inclusivity. Vance has said that the United States intends to remain the dominant force in AI, strongly opposing the European Union’s strict regulatory approach.
“We believe that excessive regulation of the AI sector could kill a transformative industry. We feel very strongly that AI must remain free from ideological bias and that American AI will not be co-opted into a tool for authoritarian censorship.”
-Vance told the summit of CEOs and heads of state in Paris, as reported by Reuters.
Vance also noted criticizing the “massive regulations” created by the EU’s Digital Services Act as well as Europe’s online privacy rules. According to him, these rules will only translate to endless legal compliance costs for smaller firms.
“Of course, we want to ensure the internet is a safe place, but it is one thing to prevent a predator from preying on a child on the internet, and it is something quite different to prevent a grown man or woman from accessing an opinion that the government thinks is misinformation”.
-Vance.
Judging by these discussions and the news that the UK and US have declined to sign the international AI declaration, UN Secretary-General António Guterres has rightly warned that AI is transforming our world already, but its power rests “in the hands of a few”.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. 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 colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. On February 11, Reuters reported that Nvidia’s potential competitor Positron, a startup chip maker, has raised $23.5 million to scale production of its U.S.-made artificial intelligence chips. Some of the investors who participated in the round include Valor Equity Partners, Atreides Management, Flume Ventures, and Resilience Reserve. Positron claims that its Ariuzona-manufactured chips use less than a third of the power of Nvidia’s top-of-the-line H100 graphical processing units, all while maintaining the same performance.
However, the startup’s chips are meant for inference, the period when an AI model is being used, instead of for training AI models. Even though demand is currently higher for training chips, analysts predict demand for inference chips could rise and even surpass them with more AI applications being deployed. At the moment, Nvidia’s chips have a market share of roughly 80%. However, tech giants and other players are increasingly looking at alternatives amid rising costs and dependence on a single supplier.
Overall NVDA ranks 4th on our list of the AI stocks that are taking Wall Street by storm. While we acknowledge the potential of 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 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.
