Top 10 Stocks Everyone Is Talking About These Days

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Funds Investors: 193

Jim Cramer in a recent program on CNBC said NVIDIA Corp (NASDAQ:NVDA) has become the “odd man” among the Mag. 7 group amid the dependence of many other companies on it and several other vulnerabilities.

“It’s not really Apple or Microsoft or Amazon or Alphabet or Meta or Tesla. It’s the odd man out of the Magnificent 7: it’s Nvidia, the most important stock in this entire stock market. Nvidia holds the key to countless tech companies. Plus, Nvidia now might be hurt by the president of the United States, who wants to tighten Chinese export controls further. The most exposed group might be semiconductor capital, with Nvidia being the most visible potential casualty. Some are going so far as to say that Nvidia holds the key to the fortunes of big momentum stocks like Paler, Apple, IT service now, and even Bitcoin. Can you imagine?”

The market will keep punishing Nvidia for not coming up to its gigantic (and sometimes unrealistic) growth expectations. About 50% of the company’s revenue comes from large cloud providers, which are rethinking their plans amid the DeepSeek launch and looking for low-cost chips. Nvidia’s Q1 guidance shows a 9.4% QoQ revenue growth, down from the previous 12% QoQ growth. Its adjusted margin is expected to be down substantially as well to 71%. The market does not like when Nvidia fails to post a strong quarterly beat. The stock will remain under pressure in the coming quarters when the company will report unimpressive growth.

Nvidia is facing challenges at several levels. Competition is one of them. Major competitors like Apple, Qualcomm, and AMD are vying for TSMC’s 3nm capacity, which could limit Nvidia’s access to these chips. Why? Because Nvidia also uses  TSMC’s 3nm process nodes. Nvidia is also facing direct competition from other giants that are deciding to make their own chips. Amazon, with its Trainium2 AI chips, offers alternatives. Trainium2 chips could provide cost savings and superior computational power, which could shift AI workloads away from Nvidia’s offerings. Apple is reportedly working with Broadcom to develop an AI server processor. Intel is also trying hard to get back into the game with Jaguar Shores GPU process, set to be produced on its 18A or 14A node.