10 AI Stocks on Wall Street’s Radar

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 212

One of the most notable analyst calls on Thursday, May 29, was for NVIDIA Corporation (NASDAQ:NVDA). Bank of America reiterated the stock as “Buy” and raised its price target on its top pick, Nvidia, to $180 per share from $160. NVIDIA specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

The rating follows Nvidia’s earnings on Wednesday. The company reported fiscal first-quarter earnings and revenue, beating analyst expectations. Its data center business led the way, with sales surging 73% year over year. Moreover, its current quarter revenue guidance was almost in line with analyst estimates at $45 billion, an outlook that could have been $8 billion higher if Nvidia didn’t face lost sales from the restriction on exporting its H20 chips to China.

The bank noted three major takeaways from the earnings call.

“Three major takeaways from the Q1 call: 1) China derisked, with $15bn in 1H sales of H20 product now already in the model, 2) Blackwell racks in full production, with every large hyperscaler now ramping close to 1K racks/week, 13K racks/quarter or ~$30bn+/q at $2.5mn+ rack ASP (or $100bn+ across the top few hyperscalers, though NVDA didn’t quantify further), and 3) NVDA confident in GM recovery back to mid-70s % sometime later in the year, another sign of improving demand and rack-scale execution.”

It further said that it is positive on the stock considering its transformation from a PC graphics chip vendor to a major supplier.

“Our positive view on Nvidia is based on its underappreciated transformation from a traditional PC graphics chip vendor, into a supplier into high-end gaming, enterprise graphics, cloud, accelerated computing and automotive markets.”