10 Stocks to Watch as Top Analyst Predicts AI Surge Will Continue Despite Bubble Worries

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1. NVIDIA Corp (NASDAQ:NVDA)

Number of Hedge Fund Investors: 235

Billionaire David Tepper of  Appaloosa Management was asked during a program on CNBC last month whether he’s an investor in NVIDIA Corp (NASDAQ:NVDA) “all the way.” Tepper said he’s gone “back and forth” on NVIDIA Corp (NASDAQ:NVDA), and while the stock remains in his portfolio, he does not have a large position in the company.

“I’ve haven’t held it all the way. I do own NVIDIA but I go back and forth and back and forth a little bit because I do, you know, I will trade a little bit. We’ve always had some NVIDIA position, but not the same size.”

Tepper talked about China-related worries during the program and said major tech companies in the Asian country are also beginning to make chips.

“What keeps my position from being too large because of worried about different things that can be there. You know some of the stocks like BABA … also making chips now, and they’ve been pushing it, so they’re doing it right and not maybe like the H20, Nvidia chip, or something like that, you know, of that quality.”

 Appaloosa has a $276.5 million stake in NVIDIA Corp (NASDAQ:NVDA) as of the end of the June quarter.

Baird Chautauqua International and Global Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) reported first quarter results that were extremely solid. The company took a write-down on China-specific datacenter products and flushed out any future China contributions from their guidance, following the new export restrictions introduced in April. Demand commentary ex China was extremely encouraging—Nvidia is outgrowing expectations despite supply constraints and outgrowing competing ASIC products by a large margin. We have been underweight Nvidia relative to the benchmark, which was up 46% in the quarter, given our short-to medium-term concerns that the feverish AI datacenter build may be resulting in overcapacity, which has not come to bear.”

While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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