On April 7, Dan Ives of Wedbush Securities joined CNBC’s ‘Squawk on the Street’ to discuss how the current tariff environment could impact tech supply chains. Musk’s actions and Trump’s tariffs have contributed to broad economic uncertainty, which Ives also referred to as the economic Armageddon for US tech in an earlier conversation. He expressed concern about the structural supply chain challenges posed by recent tariffs and geopolitical tensions. Ives highlighted that the US tech sector has historically maintained an edge over China but this could be wiped out if manufacturing were relocated to the US. The logistical hurdles of building manufacturing plants in the US are not negligible and it would take 4 to 5 years to establish facilities capable of sustaining production levels comparable to those in Asia.
He also acknowledged that he hasn’t downgraded major stocks like the ones in MAG7 but remains cautious. If these previously highlighted issues persist for months, Ives anticipates drastic cuts in earnings. This uncertainty surrounding tariffs could lead to lower demand for emerging technologies like AI and cybersecurity. He explained that this situation could severely impact the US tech companies and lead to broader cuts across the tech sector — potentially up to 25% in earnings. He also criticized Elon Musk’s political involvement, which he believes has caused permanent damage to his brand and customer base. He estimated a 20% demand destruction in Europe and 10% in the US.
While Ives remains cautious on tech, we’re here with a list of the 13 NASDAQ stocks with the highest upside potential.
A successful investor reviewing the NASDAQ-100 Index® portfolio on a touchscreen monitor.
Our Methodology
We used the Finviz stock screener to select the 13 stocks with the highest analysts’ upside potential (at least 35%) as of April 8. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 NASDAQ Stocks with the Highest Upside Potential
13. Booking Holdings Inc. (NASDAQ:BKNG)
Average Upside Potential as of April 8: 36.05%
Number of Hedge Fund Holders: 99
Booking Holdings Inc. (NASDAQ:BKNG) offers global online and traditional travel and restaurant reservations and related services. It primarily operates Booking.com, which offers online accommodation reservations. It also operates Priceline, Agoda, Kayak, OpenTable, and Rentalcars.com, for services like discount travel reservations, rental car reservation services, and vacation packages.
This is the world’s largest travel company with platform sales of over $165 billion. It enables the creation of seamless and customized travel experiences by bringing together all aspects of travel planning and booking onto a single platform through connected trip vision. Transactions in this segment grew by over 45% year-over-year in Q4 2024. This was a high single-digit percentage of the total transaction growth. Analysts now project overall growth to slow down to 6.6% in 2025 before rebounding to 8.8% in 2026.
This was fueled by the company’s flight offerings, as traveler bookings grew by 38% year-over-year to make up around 50 million airline tickets for the full year 2024. The Genius Royalty program, which offers rewards for frequent travelers, is an integral part of this growth. Travelers in the higher tiers made up over 30% of the company’s active travelers. Booking Holdings Inc. (NASDAQ:BKNG) is integrating GenAI in such offerings to further improve efficiency and feedback.
12. Apple Inc. (NASDAQ:AAPL)
Average Upside Potential as of April 8: 39.42%
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is popular for its consumer electronics which include iPhones, Macs, iPads, AirPods, Apple TV, Apple Watches, and other wearables. It also offers AppleCare support & cloud services and the App Store. It also has various subscription-based services that range from Apple Arcade for game subscriptions to Apple Fitness+ for personalized fitness services.
In FQ1 2025, the company achieved a record revenue of $124.3 billion, which marked a 4% year-over-year increase. It also set revenue records across major markets, such as the Americas, Europe, and the Asia Pacific. The company’s Services segment revenue particularly reached an all-time high of $26.3 billion, which was up by 14%. For FQ2 2025, the company expects Services revenue to see low double-digit growth.
However, on April 8, Wedbush lowered the price target on Apple Inc. (NASDAQ:AAPL) to $250 from $325, while maintaining an Outperform rating, due to the current market uncertainty surrounding tariffs. But the firm still maintains the company as a top-tier investment and thinks that the current volatility may create buying opportunities for oversold tech companies. Earlier in February, the company also made a $500 billion pledge over 4 years to create 20,000 new jobs in engineering, R&D, manufacturing, and AI, which fuels investor confidence.
11. Microsoft Corp. (NASDAQ:MSFT)
Average Upside Potential as of April 8: 39.72%
Number of Hedge Fund Holders: 317
Microsoft Corp. (NASDAQ:MSFT) develops and supports software, services, devices and solutions worldwide. These are mainly offered through its Productivity and Business Processes segment, the Intelligent Cloud, and the More Personal Computing segment. It sells its products through OEMs, distributors, and resellers, and also directly through digital marketplaces, online, and retail stores.
On April 8, Jefferies lowered the price target on Microsoft from $500 to $475, while acknowledging the macroeconomic pressures that slightly reduced their fiscal year estimates by 1% to 2% for the software and internet sectors. However, the firm maintained a Buy rating on the stock because of the company’s position in AI-driven cloud, productivity, and business solutions.
In FQ2 2025, the company’s AI revenue surged by 175% year-over-year, which represented a $13 billion annual run rate. While Azure’s growth recently slowed down a bit, this performance excluded the impact of AI in this segment. Azure AI services grew by 157% in FQ2, which was 13 points of the segment’s overall growth. Over 200,000 monthly users are already on Azure AI Foundry, and Azure OpenAI app usage has doubled. Azure cloud revenue grew 31%. Microsoft Corp. (NASDAQ:MSFT) now expects 31% to 32% Azure growth in FQ3.
Generation Global Equity Strategy expressed optimism about the company due to its AI leadership potential. It stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:
“Microsoft Corporation (NASDAQ:MSFT), the world’s largest software company, has been in the portfolio for over a decade. We like the firm because its products align closely with society’s evolving needs. As the world digitises, demand for Microsoft’s tools will continue to grow. The company enjoys a wide economic moat – built on its unique market position, deep customer understanding and extensive global footprint.
Microsoft’s management team has a long-term vision. It makes bold investments in future growth, most recently in AI. We forecast that the IT intensity of the economy will double over the next 15 years. Microsoft is a rare company with USD 250 billion in revenues, projected to grow at 16% annually over the next five years.14 Earnings-per share could grow faster. Despite its near-term valuation appearing high, we believe Microsoft is well positioned to lead in the AI era, potentially doubling or tripling its market share. Additionally, we expect returns on capital (ROC) for its AI related investments to match historical levels, despite market scepticism.
There are risks. Demand for AI systems may not materialise as expected, and increasing pricing power among suppliers like Nvidia could pressure margins. Still, from our analysis we see substantial long-term value in this name.”
10. MercadoLibre Inc. (NASDAQ:MELI)
Average Upside Potential as of April 8: 40.69%
Number of Hedge Fund Holders: 96
MercadoLibre Inc. (NASDAQ:MELI) operates online commerce platforms internationally. It operates the Mercado Libre Marketplace which can be accessed through the mobile app or website. It also offers a fintech solution platform called Mercado Pago and an advertising platform called Mercado Ads among other similar platforms.
In 2024, the company significantly expanded its credit card business and issued 5.9 million new credit cards, which doubled the company’s existing credit portfolio. Such investments temporarily impact profit margins but the long-term profitability of these credit card ventures is secure. The Mercado Pago platform also achieved 60 million monthly active users this year.
The company is now optimizing payment processing times for its POS devices. It’s also used open finance to refine credit scoring and increase credit limits for merchants. MercadoLibre Inc. (NASDAQ:MELI) aims to capitalize on the opportunities presented by the underserved financial markets in Latin America. Furthermore, the company’s advertising revenue grew 37% year-over-year in 2024.
Infuse Asset Management is optimistic about the company despite potential future competition and stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its Q4 2024 investor letter:
“Staying in Latin America, MercadoLibre, Inc. (NASDAQ:MELI) continues to spin its commerce/payments flywheel. While it started out as an e-commerce platform, its fintech business is now much larger. When management pulled back on giving out loans for fear of a worsening economy, overall revenue growth picked up with accelerating GMV in the core e-commerce business. Then, the finance business segment started to reaccelerate when the team realized nonperforming loan ratios were lowered than expected. But the segments aren’t fully independent. There is a beautiful synergy as on-platform payments lower the friction for the commerce business and faster delivery times lead to more orders and therefore more payments. Meanwhile, MELI also offers a plethora of tools for merchants in both commerce and finance. The company is still growing more than 30% and it has a leading brand in Latin America. Someday Nu and MercadoLibre will bump up against each other but I think we still have at least 5 years before they start competing head-on. For less than 30x forward earnings, the valuation is still reasonable for the company.”
9. Tesla Inc. (NASDAQ:TSLA)
Average Upside Potential as of April 8: 43.60%
Number of Hedge Fund Holders: 126
Tesla Inc. (NASDAQ:TSLA) is a global EV manufacturer and energy generation and storage systems company. Its Automotive segment offers products and services related to EVs, while the Energy Generation and Storage segment engages with solar products and services for residential, commercial, and industrial customers.
Tesla Inc. (NASDAQ:TSLA) is relatively insulated from the current tariff environments as compared to other major automakers in the US because of a higher degree of vertical integration than traditional automakers. However, it does heavily rely on international sources, like China, for a substantial amount of its parts and batteries. Given this risk, Wedbush reduced the company’s price target from $550 to $315 on April 8, while reaffirming an Outperform rating.
The company’s autonomous driving and AI-related initiatives are anticipated to eventually make up 90% of its valuation. Optimus can generate over $10 trillion in revenue for Tesla Inc. (NASDAQ:TSLA). Internal plans call for building ~10,000 Optimus robots in 2025 alone. The initial robotaxi rollout plans in select US cities will also strengthen the company’s market presence in autonomous vehicle technology.
Nightview Capital views this company as a leader in the real-world AI space and stated the following regarding Tesla Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“Artificial intelligence is no longer just a promise—it’s becoming the defining force of the modern economy. From self-driving vehicles to humanoid robotics, intelligent systems are not only enhancing efficiency but unlocking entirely new markets. These systems process and learn from vast amounts of real-world data, iterating and improving at a scale no human could achieve.
In our view, this isn’t just innovation; it’s exponential evolution. Companies leading the AI revolution are building formidable data moats, making it nearly impossible for latecomers to compete. Every mile driven by an autonomous vehicle, every task completed by an industrial robot—these actions feed a cycle of continuous improvement.
Industries like transportation, healthcare, and logistics are on the brink of massive disruption, and we believe this is a pivotal moment.
Tesla, Inc. (NASDAQ:TSLA): Core Opportunity: As highlighted in our 3Q investor letter, we believe Tesla’s leadership in real-world AI continues to be underestimated by the market. After a period of relatively flat growth, we see Tesla at the cusp of the next S-curve of transformation, driven by advancements in autonomous driving, energy storage, and electric vehicles. These multi-trillion-dollar markets offer Tesla a unique, integrated growth trajectory unmatched by competitors…” (Click here to read the full text)
8. Meta Platforms Inc. (NASDAQ:META)
Average Upside Potential as of April 8: 49.15%
Number of Hedge Fund Holders: 262
Meta Platforms Inc. (NASDAQ:META) helps people connect and share with friends and family through its Family of Apps (FoA) and Reality Labs (RL) segments. FoA offers Facebook, Instagram, Messenger, Threads, and WhatsApp. Whereas RL provides virtual, augmented, and mixed reality-related products which include consumer hardware, software, and content.
On April 3, Brad Erickson of RBC Capital set a price target of $740 on the company while reiterating a Buy rating because of the optimism surrounding the company’s growing market share in digital advertising. The analyst anticipates the company’s gain in the ad market to increase in 2025, making a comparison of Meta Platforms Inc. (NASDAQ:META) with Google.
This is reflected in the company’s Q4 2024 performance. The total FoA revenue surged by 21% in this quarter, whereas ad revenue for this segment alone rose by the same percentage. FoA recorded $47.3 billion in Q4 revenue, whereas FoA ad revenue generated $46.8 billion in the same period. Additionally, the total number of ad impressions increased by 6%, while the average price per ad rose by 14%. The company is further improving its revenue performance through better monetization efficiency.
Nightview Capital highlighted the company’s strong growth potential, due to its AI leadership with Llama model, advertising ecosystem, and AR capabilities. It stated the following regarding Meta Platforms Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Core Opportunity: Meta Platforms, Inc.’s (NASDAQ:META) platforms—Instagram, Facebook, WhatsApp, and Messenger—reach nearly half the world’s population daily, making it one of the most powerful advertising ecosystems globally. With investments in AI and augmented reality (AR), we believe Meta is also creating significant optionality for long-term growth.
Competitive Advantage: Thriving Core Platforms: In Q3, we saw Meta achieve a 23% YoY revenue growth,—a testament to strong user engagement across its ecosystem. The advertising landscape as a whole continues to evolve and we believe Meta’s existing platforms offer a defined advantage in this new world. Existing platforms in the age of AI continue to be the most powerful indicator of future success in our opinion.
AI Leadership: Meta’s AI capabilities and the Llama AI model are driving efficiency and product innovation. In our view, these assets have been under-appreciated by the market while enhancing Meta’s ability to further scale and innovate its leading advertising business…” (Click here to read the full text)
7. Alphabet Inc. (NASDAQ:GOOGL)
Average Upside Potential as of April 8: 49.91%
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOGL) operates through Google Services, Google Cloud, and Other Bets segments. Google Services offers products and services like ads, Chrome, Google Drive, and Google Maps. Google Cloud offers AI infrastructure, Vertex AI platform, cybersecurity, and data & analytics for enterprise customers. The Other Bets segment sells healthcare-related and internet services.
Ken Gawrelski of Wells Fargo maintained an Equal Weight rating on the company on March 31 while reducing the price target from $184 to $167 due to caution surrounding the market because of the current macroeconomic environment. The analyst also believes that Google’s search business could potentially be disrupted by emerging technologies, like AI.
However, the company now processes over 5 trillion annual searches, up from 2 trillion in 2016. Such improvements are fueled by AI features like Circle to Search and AI Overviews. Circle to Search lets you search for anything on your screen by circling or scribbling on it. AI overviews are AI-generated summaries that appear at the top of Google search results and provide quick answers to queries. Alphabet Inc. (NASDAQ:GOOGL) is also testing Gemini 2.0 in search results and focusing on voice, camera, and visual search to integrate advanced AI in its offering.
Due to its growth in Search and Cloud, and the company’s AI potential, Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”
6. Amazon.com Inc. (NASDAQ:AMZN)
Average Upside Potential as of April 8: 54.06%
Number of Hedge Fund Holders: 339
Amazon.com Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores internationally. It has 3 segments called North America, International, and Amazon Web Services (AWS). Its products are offered through its stores and include merchandise and content purchased for resale, and products offered by third-party sellers.
The company’s AWS segment revenue improved by 19% year-over-year in Q4 2024, as more and more customers are moving to the cloud to use AI. The company’s AI chips under the name of Tranium 2 are 30% to 40% cheaper than competitors, which helps Amazon.com Inc. (NASDAQ:AMZN) attract big clients like Anthropic, which is an AI safety and research company. Amazon Q, which is an AI assistant, is saving companies time and money and showcases practical AI use.
AWS is heavily investing in data centers for AI and expects similar spending in 2025. On April 4, TD Cowen analyst John Blackledge lowered the price target on the company from $265 to $240 while keeping a Buy rating. This target was a result of current macro concerns and weak consumer sentiment overall. However, Blackledge believes that the stock’s valuation is appealing at its current levels and the company will report strong FQ1 2025 results, mostly fueled by AWS. Earlier in February, Blackledge had forecast AWS’s GenAI revenue to grow from $7.1 billion in 2025 to $56.3 billion in 2030.
Nightview Capital is bullish on the company due to its AI-powered efficiency gains in retail and stated the following regarding Amazon.com Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Artificial intelligence is no longer just a promise—it’s becoming the defining force of the modern economy. From self-driving vehicles to humanoid robotics, intelligent systems are not only enhancing efficiency but unlocking entirely new markets. These systems process and learn from vast amounts of real-world data, iterating and improving at a scale no human could achieve.
In our view, this isn’t just innovation; it’s exponential evolution. Companies leading the AI revolution are building formidable data moats, making it nearly impossible for latecomers to compete. Every mile driven by an autonomous vehicle, every task completed by an industrial robot—these actions feed a cycle of continuous improvement.
Amazon.com, Inc. (NASDAQ:AMZN): Core Opportunity: Amazon’s growth is anchored by three high-potential areas: retail margin expansion, a rapidly growing advertising business, and the continued growth and need for Amazon Web Services (AWS). Together, these pillars position Amazon for the next leg of growth and profitability.
Competitive Advantage: Retail Margin Expansion: With e-commerce still accounting for only 16% of retail sales in the United States (per the U.S. Census Bureau)—and even less globally—Amazon has significant room for growth. CEO Andy Jassy’s emphasis on AI-driven efficiencies, such as a possible 25% reduction in cost-to-serve, underscores the company’s ability to unlock new profitability in their now three-decade-old core business. More than a decade after the Kiva robotics acquisition, we see the potential for the next wave of automation to reduce variable cost per unit (VCPU) on the “pick and pack” and transportation side of the business as the decade progresses. Overall, we see EBIT margins expanding steadily throughout the next several years…” (Click here to read the full text)
5. Adobe Inc. (NASDAQ:ADBE)
Average Upside Potential as of April 8: 54.09%
Number of Hedge Fund Holders: 117
Adobe Inc. (NASDAQ:ADBE) is a tech company that operates through its Digital Media, Digital Experience, and Publishing & Advertising segments. It offers its solutions directly to enterprise customers through its sales force and local field offices, and directly to businesses and consumers. It also licenses its products to end-user customers through app stores and websites.
The company’s Digital Media segment includes Creative Cloud and Document Cloud, which together generated $4.23 billion in FQ1 2025, which was up 12% year-over-year. Digital Media’s annualized recurring revenue was also up 12.6%. This was driven by the growing subscription-based revenue stream within this segment. Other factors that contributed to this growth include Adobe Inc.’s (NASDAQ:ADBE) PDF software, the web and mobile versions of Acrobat also performed well, and Adobe Express.
The integration of GenAI features, such as Firefly, in Adobe Inc.’s (NASDAQ:ADBE) offerings, has been well-received by enterprise customers. For instance, the AI Assistant in Acrobat helps users with tasks like summarizing and editing PDFs. The web and mobile versions of core applications in Creative Cloud, like Photoshop and Illustrator, also had their paid subscriptions grow 35% year-over-year.
Polen Focus Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q3 2024 investor letter:
“We added to several existing positions in the quarter including Adobe Inc. (NASDAQ:ADBE), Workday, Shopify, MSCI, and Paycom Software. We feel Adobe is poised for re-accelerating revenue and earnings growth partially due to the monetization of its Firefly GenAI product embedded in its creative software.”
4. Broadcom Inc. (NASDAQ:AVGO)
Average Upside Potential as of April 8: 62.19%
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) specializes in various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products. Its products are used in many enterprise and data center networking applications, like AI networking and connectivity, home connectivity, and broadband access.
The company’s revenue from XPU and AI-related networking reached $4.1 billion in the FQ1 2025, which was up 77% year-over-year. This AI semiconductor revenue is projected to be $4.4 billion in FQ2, which will mark a 42% rise. This is fueled by the company’s shipments of networking solutions to hyperscale customers who are investing in next-gen AI models. The company anticipates a $60 to $90 billion SAM from its three primary hyperscale customers by the full fiscal year 2027. Four additional hyperscale customers are now already collaborating with it to develop custom AI accelerators.
On March 7, Piper Sandler reaffirmed an Overweight rating for the company with a $250 price target because of its AI and networking growth. Later the same month, the company also announced that it expanded its 200G/lane DSP PHY portfolio by introducing Sian3 and Sian2M, which are designed to improve AI/ML cluster connectivity. These DSPs optimize power usage in single-mode and short-reach multi-mode fiber links for 800G and 1.6T optical transceivers.
Renaissance Large Cap Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) was another large contributor in the quarter after reporting solid operating results. The company presented an optimistic outlook, driven by its dominant position in artificial intelligence application-specific chipsets. In addition, the company should continue to benefit from its leading position in several end markets including data centers and cloud infrastructure, which have favorable secular growth trends. Broadcom is also seeing margin expansion and improved visibility, as the mix of software revenues increases, following the acquisition of VMWare.”
3. Advanced Micro Devices Inc. (NASDAQ:AMD)
Average Upside Potential as of April 8: 67.38%
Number of Hedge Fund Holders: 96
Advanced Micro Devices Inc. (NASDAQ:AMD) offers products like AI accelerators, x86 microprocessors, and GPUs through its Data Center, Client, Gaming, and Embedded segments. It serves OEMs and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force and sales representatives.
Jefferies lowered the company’s price target from $135 to $120 on March 27 as analyst Blayne Curtis noted that the company’s AI growth remains weaker than anticipated. Therefore, the firm also downgraded the company’s rating from Buy to Hold although it has gained market share in PCs and servers. This raises doubts regarding the company’s projected AI revenue for 2026 and 2027.
As for 2025, Advanced Micro Devices Inc. (NASDAQ:AMD) entered the year with a string pipeline. For instance, its Ryzen AI processors are optimized for Microsoft’s Copilot AI assistant and could boost growth in the client segment of the company. In Q4 2024, the company reported a record revenue of $7.7 billion which came after a 24% year-over-year improvement. This was majorly driven by the Data Center segment where revenue almost doubled year-over-year due to the rapid adoption of EPYC processors.
2. NVIDIA Corp. (NASDAQ:NVDA)
Average Upside Potential as of April 8: 79.23%
Number of Hedge Fund Holders: 223
NVIDIA Corp. (NASDAQ:NVDA) is a computing infrastructure company that offers graphics and compute & networking solutions. It sells its products to various parties such as OEMs, original device manufacturers, system integrators & distributors, independent software vendors, cloud service providers, and consumer internet companies.
In the full fiscal year 2025, the company’s total revenue doubled year-over-year to generate $115.2 billion. Blackwell sales alone, which supported this growth majorly, reached $11 billion in the last quarter of FY25. Blackwell is deployed by major cloud providers like Azure and AWS and is designed for AI inference, with 25x higher throughput and 20x lower cost than the previously made models.
Some of its popular AI-driven solutions include platforms for data centers, self-driving cars, robotics, and cloud services. On April 3, HSBC analyst Frank Lee downgraded the company from Buy to Hold and lowered his price target on NVIDIA Corp. (NASDAQ:NVDA) from $120 to $55 potential. Still, the company now expects FQ1 2026 revenue to reach $43 billion.
Guinness Global Innovators is positive on the company due to its dominant AI chip market position and stated the following regarding NVIDIA Corp. (NASDAQ:NVDA) in its Q4 2024 investor letter:
“For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund’s top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia’s ‘Hopper’ GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current ‘Hopper’ GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia’s extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to “inference” (the speed at which AI models respond to queries). Throughout the year, Nvidia’s financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia’s data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia’s technological leadership, ensuring continued momentum into 2025. While Nvidia’s valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.”
1. Marvell Technology Inc. (NASDAQ:MRVL)
Average Upside Potential as of April 8: 121.57%
Number of Hedge Fund Holders: 105
Marvell Technology Inc. (NASDAQ:MRVL) provides data infrastructure semiconductor solutions and develops and scales SoC architectures, integrating analog, mixed-signal, and digital signal processing functionality. It operates in the US, Argentina, China, India, Israel, Japan, Singapore, South Korea, Taiwan, and Vietnam.
The company has a strong position in the AI and cloud markets. It achieved significant wins in its AI/cloud ASIC pipeline and has secured a high-volume, next-gen node AI XPU ASIC program with its largest customer, which is Amazon Web Services. This partnership is expected to drive substantial growth for Marvell Technology Inc. (NASDAQ:MRVL). The company’s leadership in electro-optics, substantial market share in DSPs, and its expanding AI ASIC pipeline also add to its growth potential.
Vivek Arya of Bank of America kept a Buy rating on the company with a $120 price target on March 22 due to its AI opportunity and growth trajectory. The firm expects Marvell Technology Inc. (NASDAQ:MRVL) to revise its growth forecast positively at the upcoming June analyst day, particularly as the data center TAM is projected to approach $100 billion. Marvell Technology Inc. (NASDAQ:MRVL) aims for a 20% share of this segment.
While we acknowledge the growth potential of Marvell Technology Inc. (NASDAQ:MRVL), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MRVL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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