Tariff Hits and More: 10 AI Stocks in the Spotlight

5. 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 Thursday, April 3rd, was for Nvidia Corporation. HSBC analyst Frank Lee downgraded shares to “Hold” from buy and cut his price target by $55 to $120 based on limited upside potential.

“We expect Nvidia to deliver YoY sales growth of 62% and EPS growth of 58% in FY26e, while the current FY26e [price-to-earnings ratio] of 23x also does not look demanding to us. However, we now expect to see limited upside potential going forward given limited room for significant earnings upside surprise over the next 1-2 years and potential re-rating headwinds that we think are yet to be fully factored in by the market.”

The advent of Chinese AI startup DeepSeek had pressured the stock earlier which has been lagging the broader market ever since.

“We first upgraded Nvidia to Buy in April 2023 on the back of Nvidia’s strong AI GPU pricing power and product mix being underestimated by the market that we believe has continued for past two years,” he wrote. “However, we now think Nvidia’s GPU pricing power is slowing down as we have seen no significant ASP boost between B200 and B300 GPU or the GB200 and GB300 NVL72 rack architecture.”