5 AI Stocks Wall Street Is Watching Now: Nvidia, Micron, and More

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 264

Accelerating AI demand and estimate revisions has recently drawn renewed interest from Goldman Sachs on Nvidia. The stock is second on our list of 12 AI Stocks Wall Street Is Watching Now.

On May 7, analyst James Schneider reiterated a Buy rating on the stock with a $250.00 price target.

With Nvidia posting its earnings on May 20, the firm anticipates investors to focus on a few major points. The first of these is whether there is more upside to Nvidia’s $1 trillion data center guidance from GTC. The second, the firm noted, is whether there is potential benefit from agentic AI for the server CPU business.

Investors should also be focusing on Nvidia’s competitive dynamics, as per the firm, as well as gross margin outlook given the rising input costs. Overall, Goldman Sachs anticipates a beat-and-raise quarter for Nvidia on the back of positive industry supply and demand data points. However, the firm also warned that the “bar for stock outperformance is relatively high heading into the print.”

The firm also acknowledged how the stock has lagged peers and trades at a meaningful discount relative to history, there is also a chance that the stock’s multiple can re-rate.

Our updated CY26/27 estimates are 14%/34% above the Street, and we expect positive estimate revisions and multiple re-rating to drive stock outperformance over the next 12 months. We raise our estimates by ~12% on average and reiterate our Buy rating and $250 price target.

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