We recently published a list of 10 AI News Making Waves on Wall Street. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI news making waves on Wall Street.
OpenAI has previously been dependent on Nvidia for its chip supply, but it looks like it may not be for long. As reported by Reuters, the artificial intelligence startup is all set to develop its first generation of in-house artificial intelligence silicon.
According to sources, the startup is finalizing the design for its first in-house chip in the next few months. It then plans to send it for fabrication at Taiwan Semiconductor Manufacturing Co in a “taping out” process.
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This training-focused chip will be used as a strategic tool to strengthen OpenAI’s negotiating leverage with other chip suppliers. If all goes smoothly, the company will be able to mass-produce its first in-house AI chip and potentially test an alternative later this year.
Meanwhile, big tech companies have struggled to produce satisfactory chips over the years. Nevertheless, DeepSeek has raised questions about whether fewer chips will be needed in developing powerful models in the future.
Google DeepMind boss Demis Hassabis has recently dismissed DeepSeek’s claims that its popular chatbot and AI model is using far less money than US rivals.
DeepSeek “seems to have only reported the cost of the final training round, which is a fraction of the total cost.”
– Hassabis told Bloomberg Television
He also stated that DeepSeek’s emergence doesn’t upend the economics of AI development.
“We don’t see any new silver bullet technologies. DeepSeek is not an outlier on the efficiency curve.”
-Hassabis said at the Artificial Intelligence Action Summit.
The Chinese startup has reportedly spent around $5.6 million on computing costs to train its models. OpenAI and Microsoft are currently investigating these claims, searching if anyone tied to DeepSeek has obtained data from OpenAI through a process known as distillation.
According to Hassabis, DeepSeek seems “to have relied on some Western models to distill from”.
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).
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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 10, Bloomberg reported that Hon Hai Precision Industry Co., the main supplier of Nvidia’s AI servers and the world’s largest assembler of Apple’s iPhones, has posted a 3% rise in January sales and reinforced its first-quarter outlook. The company reported a revenue of NT$538.7 billion ($16.4 billion) for January, albeit the performance was skewed because the week-long Lunar New Year break fell in January this year instead of in February in 2024. As a key player in AI infrastructure and Nvidia’s most important AI server maker, the company said that first-quarter sequential growth would be “better than the average level” of the past five years. However, it still faces uncertainty due to Trump-administration tariffs and questions about the sustainability of the AI boom.
Overall, NVDA ranks 3rd on our list of AI news making waves on Wall Street. 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.