10 Hot AI Stocks to Keep on Your Radar

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 235

NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 Hot AI Stocks to Keep on Your Radar. On October 9, Cantor Fitzgerald reiterated the stock as “Overweight” and raised its price target to a Wall Street high of $300 per share from $240 following management meetings.

“We hosted NVDA mgmt for investor meetings in NYC this past week, including Jensen Huang (CEO), Colette Kress (CFO), Toshiya Hari (IR), as well as other Senior Executives.”

The executives discussed details of the new partnership with OpenAI.

“The vision here is to remove margin stacking by server ODM’s and CSP’s, enabling the cost delta between NVDA and ASICs to only an average of 15% – truly a win-win for both and placing potentially further pressure on the ASIC market,” said Cantor analysts, led by C.J. Muse, in a Thursday investor note. “The company continues to work at Extreme Co-Design at an annual cadence, enabling the optimization of the entire AI Infrastructure (no one wants to buy chips only, they want to deploy AI at scale), helped by a full-stack solution including CUDA-X.”

The firm believes that Nvidia will reach an $8 earnings per share in calendar year 2026. Furthermore, it said that token demand has climbed sharply in the previous months, increasing profit per token.

“OpenAI and other platforms are now generating 50-70% gross margins, leading to every stood up GPU now sold out. Customers are searching desperately for compute wherever they can find it. More specifically, in the last 12-16 weeks we have seen an inflection – likely tied to time-based reasoning explosion coupled with multimodal inputs, led by video where context length is super long.”

The firm is also strongly convinced that the rapid, wide-scale adoption of generative AI is proof that it is not a bubble.

“In the last 12 months, recommenders have adopted Generative AI,” Muse noted. “Search has moved to Generative AI. Social Media to Generative AI. User-Generated content, Ad recommendation, everything has moved from classical machine learning to Generative AI. NVDA sees $2 Trillion in spending here from traditional compute to Generative AI alone. We are simply not in a bubble, rather the market is beginning to see how ‘quality’ AI can deliver meaningfully positive ROI’s.”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.