We recently published a list of 10 AI Stocks Making Big Moves Today. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks making big moves today.
What is the biggest security risk in artificial intelligence? According to CPPCC member Zhou Hongyi, co-founder and chairman of internet security firm Qihoo 360, it is to fall behind.
The Chinese People’s Political Consultative Conference (CPPCC) is a political advisory body in China and a key component of the Chinese Communist Party (CCP)’s united front system.
Unlike former President Joe Biden’s stance on AI, which was supportive but cautious, current AI leaders, including President Donald Trump, and political advisors in Beijing, are against overregulation in the AI industry.
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The Trump administration has since reversed Biden’s AI executive order and launched the Stargate project, reflecting on his pro-innovation stance instead. Likewise, Beijing’s political advisors have made remarks ahead of the country’s annual parliamentary meetings, advising against overregulating artificial intelligence companies amid a growing debate about the emerging technology.
“We should neither exaggerate nor ignore security issues related to AI. Some leading AI companies in the US exaggerate the security issues of AI as an excuse for not having open-sourced products as they seek a monopoly, so the latecomers cannot catch up.”
– CPPCC member Zhou Hongyi.
Zhou cautioned that China must “correctly understand” the security risks in AI.
“Falling behind in [AI] development is the biggest security risk. We must seize this opportunity of AI to improve productivity and let everyone benefit from the fruits of the inclusiveness of science and technology”.
Zhang Yi, a senior partner at King & Wood Mallesons and CPPCC member, advised that China needs to develop its own AI rules to ensure stable development but at the same time, needs to be aware that “overly strong legal intervention might become a rope that strangles the development of AI as global competition intensifies”.
In a race towards supremacy in artificial intelligence, Beijing is working hard and has signaled that it will act cautiously on regulation of the sector. According to the Ministry of Science and Technology, legislation on artificial intelligence is going to be rolled out in an “orderly” way in response to proposals from the CPPCC.
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. The hedge fund data is as of Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. One of the biggest analyst calls on Tuesday, March 4th, was for Nvidia Corporation. Bernstein reiterated the stock as “Outperform” and a $185.00 price. The firm stated that the selloff in Nvidia shares is overdone and that the stock is “so back”.
“Nevertheless, worries that the AI trade is ‘over’ feel a little premature to us, and valuation is getting increasingly attractive.”
The firm considers Nvidia’s derating to be a “little stunning” considering how Blackwell product revenues of $11 billion all shipped in January, reflecting easing supply constraints and an anticipation that demand will exceed supply in the coming quarters.
Also, “it is becoming increasingly clear that DeepSeek is not doomsday for AI demand.”
The firm has highlighted how multiple catalysts remain in favor of the stock, including rising spending intentions, the beginning of a new product cycle, and the upcoming GTC event, which is Nvidia’s GPU Technology Conference, an AI conference for researchers, developers, engineers and investors.
“It is clear that the Blackwell introduction has not gone as smoothly as the company might have hoped, and there remains added volatility given how laser-focused investors are on this supply chain. However, it does seem they have worked through things.”
A potential headwind to keep a lookout for is how strict President Donald Trump’s export restrictions on China will ultimately prove.
“For what it is worth, every ~$10B would account for ~25 cents in NVDA EPS; a full China datacenter ban would likely impact EPS ($5-6 baseline?) by mid to high single digits, with the stock already pulling back by much more than that.”
Overall, NVDA ranks 2nd on our list of AI stocks making big moves today. 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 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.