Wall Street Picked These 5 AI Stocks for 2024

4. NVIDIA Corp (NASDAQ:NVDA)

Number of Hedge Fund Holders: 173
YTD Performance as of March 7, 2024: +78.4%

NVIDIA Corp (NASDAQ:NVDA) was the best-performing stock in the S&P 500 last year after rallying by more than 251% at the back of the AI frenzy. Given its momentum over the past year, it is one of Wall Street’s top AI stock picks.

While NVIDIA Corp (NASDAQ:NVDA) has more than tripled in value amid the AI frenzy, Tigress Financial analyst Ivan Feinseth believed the stock could rise to record highs of $985 a share.

Goldman Sachs analysts’ have already raised their fiscal 2025 and 2026 estimates for Nvidia  insisting earnings should grow by an average of 22%  on robust AI server demand.

“We no longer assume a drop off in Data Center revenue in 2HCY24 and instead model consistent growth through 1HCY25 driven by continued spending on Gen AI infrastructure by the large cloud service providers, a broadening customer profile, and multiple new product cycles,” the analysts wrote.

Insider Monkey scoured through 933 hedge fund portfolios for their Q4 2023 investments and discovered 173 NVIDIA Corp (NASDAQ:NVDA) shareholders. Rajiv Jain’s GQG Partners was the firm’s most significant investor due to its $6.8 billion stake.

Here is what Alger Spectra Fund said about NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2023 letter to investors: 

“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super- computing parallel processing techniques for solving complex computational problems. Simply put, Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. During the period, shares contributed to performance as Nvidia reported solid fiscal third quarter results well above analyst expectations, driven by strong demand from data centers. Growing Al data center workloads are driving demand for the increased interconnections and fully accelerated software stacks, thereby enabling leading application performance and fast result times.”

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