10 AI Stocks in the News Today

4. 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 for Monday, May 5, was for Nvidia Corporation. Melius reiterated stocks such as Broadcom, Nvidia, IBM, and Microsoft as “Buy,” stating that the firm is standing by a slew of tech stocks.

Despite earnings being weeks away, analysts are quite reassured that Big Tech companies are still eager to continue spending billions of dollars on the development of artificial intelligence. In particular, the firm noted that upside in capex spending for this year and 2026 “is even more important now” for Nvidia because the company’s business in China has been curbed again by the Trump administration’s restrictions on its H20 chips.

The curb could cost the company more than $15 billion in annualized revenue. However, Nvidia “could see support as the year progresses from the hyperscaler purchases and from others like CoreWeave and Elon Musk’s companies”.

Nvidia is also seeking transparency on the Biden administration’s “AI-diffusion” rule, anticipated to go into effect in the coming weeks.

“We are optimistic Trump’s team will make the rule simpler but are growing more concerned that it will take a similarly restrictive approach that companies like Nvidia will need to navigate,” The firm sees revenue upside for the April quarter” coming from sales of its H20 chip in China that occurred before the new rules went into place.

Analysts also expect that the company saw “brisk sales” of its new Blackwell chip to U.S. hyperscale cloud providers. It further noted that the H20 ban could cause a $4 billion to $5 billion sequential hit to revenue for Nvidia in the July quarter.

“As a result, Nvidia’s sales may be flattish [sequentially] in the July quarter but then return to almost double-digit [quarter-over-quarter] growth in October and January due to Blackwell deliveries into Hyperscalers and Tier 2 clouds.”