We recently published a list of Top 11 AI News and Ratings You Should Take a Look At. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other top AI news and ratings you should take a look at.
AI is experiencing a shift from massive, resource-intensive models to more efficient and accessible alternatives. Sakana AI’s CEO, David Ha, discussed how this transition is shaping the future of AI, highlighting the role of compact models and the broader impact on computing demand on Bloomberg: The Asia Trade. As AI development diversifies, the market is moving away from reliance on a single dominant player, and companies are exploring innovative ways to optimize performance.
The Growing Role of Efficient AI Models in Everyday Technology
David Ha shared his perspective on the AI industry, emphasizing how models like China’s DeepSeek are fueling demand for GPUs. He explained that the traditional approach has been to develop increasingly large AI models requiring significant investments and energy, but companies like Sakana AI are focusing on making AI faster and more efficient. One example is Tiny Swallow, a compact AI model built using Sakana AI’s Tate distillation method, which maintains strong performance despite being 100 times smaller than large models. This model can run entirely on a smartphone or web browser without relying on an API, reflecting a broader trend toward efficient AI solutions in 2025.
Ha compared the current landscape of AI to early computing, where large mainframes eventually gave way to more accessible, optimized technologies like PCs and smartphones. He believes AI will follow a similar path, with smaller, specialized models becoming more widespread. He also expects a future where multiple AI models, including those from DeepSeek, Meta’s Llama, and Sakana AI, will be used across different applications rather than a single dominant player controlling the market.
When asked about Nvidia, Ha dismissed concerns that smaller, efficient AI models could reduce demand for GPUs. Instead, he argued that these advancements will expand GPU usage, especially for inference tasks rather than just training, and attract a more diverse global user base. He believes that the company is well-positioned to benefit from this growing demand for AI compute power.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 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) provides graphics, compute, and networking solutions for gaming, data centers, automotive, and professional visualization markets worldwide.
On February 4, Bank of America maintained a Buy rating on NVIDIA (NASDAQ:NVDA) with a $190 price target, calling it a top pick ahead of its FQ4 2025 earnings on February 26. The firm expects a slight beat or in-line sales guidance and a lower gross margin in FQ1 due to the Blackwell transition and China restrictions. However, the firm believes that this earnings call could mark a turning point for sentiment as NVIDIA is likely to reassure on Blackwell execution, express confidence in FY26/CY25 growth with data center sales expected to rise over 60% year-over-year and build excitement for the GTC Conference on March 17. The stock is seen as attractively valued at around 26x CY25 estimated earnings.
Overall, NVDA ranks 1st on our list of top AI news and ratings you should take a look at. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.
