12 Best Debt-Free Stocks to Buy Now

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1. NVIDIA Corporation (NASDAQ:NVDA)

Potential Upside: 33.7%

Number of Hedge Fund Holders: 234

NVIDIA Corporation (NASDAQ:NVDA) is among the best debt-free stocks to buy now. Only a few days after receiving the green light for export to China (export approval), shipments of H200 AI processors have again taken center stage. On Thursday, January 15, Bloomberg reported that House Representative John Moolenaar raised concerns on the shortage of dynamic random-access memory, or DRAM, and apprised Commerce Secretary Howard Lutnick of this “immediate challenge”. He said,

Due to severe supply constraints, chips equipped with HMB3E bound for China represent an opportunity cost when it comes to HMB3E that could otherwise be utilized by American customers.

High-bandwidth memory (HBM) is an essential component of H200 and is manufactured by three companies: Samsung Electronics, SK Hynix, and Micron Technology. According to Bloomberg, over the last few months, these three companies have already warned of supply constraints and a potential shortage of this component. While NVIDIA Corporation (NASDAQ:NVDA) has said it can fulfil all approved H200 orders without impacting other products or customers, the restrictions from the export approval could now come into effect, requiring proof of “sufficient” US supply.

Mr. Moolenaar has now asked Secretary Lutnick to brief on the situation by January 25, including the impact on licence approvals based on the availability of memory chips.

While the H200 export market remains dynamic, analysts appear to be focusing on the company’s fundamentals at the moment. On Friday, January 16, analysts at Jefferies reiterated their bullish stance on NVIDIA Corporation (NASDAQ:NVDA) and raised their price target to $275 from $250. As the stock trades at a mid-teen multiple to 2027 estimates, the analyst believes it “remains pretty cheap.”

NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system-on-a-chip (SoC) units, and AI hardware and software. Its products are used in gaming, data centers, artificial intelligence, autonomous vehicles, and professional visualization.

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: 12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

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