Top 12 AI Stocks Taking Wall Street by Storm

4. 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 11, Reuters reported that Nvidia’s potential competitor Positron, a startup chip maker, has raised $23.5 million to scale production of its U.S.-made artificial intelligence chips. Some of the investors who participated in the round include Valor Equity Partners, Atreides Management, Flume Ventures, and Resilience Reserve. Positron claims that its Ariuzona-manufactured chips use less than a third of the power of Nvidia’s top-of-the-line H100 graphical processing units, all while maintaining the same performance.

However, the startup’s chips are meant for inference, the period when an AI model is being used, instead of for training AI models. Even though demand is currently higher for training chips, analysts predict demand for inference chips could rise and even surpass them with more AI applications being deployed. At the moment, Nvidia’s chips have a market share of roughly 80%. However, tech giants and other players are increasingly looking at alternatives amid rising costs and dependence on a single supplier.