5 Best AI Stocks to Buy in June

3. NVIDIA Corp. (NASDAQ:NVDA)

Potential Upside:46.27%

Number of Hedge Fund Holders: 275

NVIDIA Corp. (NASDAQ:NVDA) is one of the 10 Best AI Stocks to Buy in June. On June 5, DA Davidson’s head of technology research, Gil Luria, said Nvidia’s profit margins are relatively safe through 2030 due to the limited chip alternatives for hyperscalers in the market, according to a report by Bloomberg.

The analyst highlighted the reliance of hyperscalers on Nvidia’s chips, noting that they don’t have many options when it comes to chips powering data centers for artificial intelligence. He added:

“They are still by and large relying on Nvidia chips, almost entirely. That makes Nvidia’s gross margins around mid-70s, relatively safe.”

For the quarter of fiscal year 2027, Nvidia reported GAAP and non-GAAP gross margins of 74.9% and 75.0%, respectively. Revenue for the quarter soared 85% from a year ago to $81.6 billion.

Based on 68 analyst ratings compiled by CNN, 94% marked Nvidia Buy while 4% assigned a Hold rating. The stock has a median price target of $300, a 46.27% upside from the current price of $205.10.

NVIDIA Corp. (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system-on-a-chip units (SoCs), and AI hardware and software. Its GPUs are used in gaming, high-performance computing, AI training, and inference and serve as the backbone of data center infrastructure worldwide.