1. NVIDIA Corporation (NASDAQ:NVDA)
Altimeter Capital’s Stake: $1,510,607,666
Despite bubble fears and valuation concerns, the scarcity of high-quality AI chips and NVIDIA’s (NASDAQ:NVDA) dominance in this space remain the biggest growth drivers for the stock. This scarcity gives Nvidia strong pricing power because hyperscalers are aggressively competing for limited supply.
NVIDIA Corporation (NASDAQ:NVDA) management sees total sales potentially reaching $1 trillion through 2027, driven by continued hyperscaler investment in AI infrastructure. Hyperscaler capital expenditure could reach $600 billion to $700 billion in 2026 alone, which provides a large and expanding demand base for Nvidia’s systems.
NVIDIA’s (NASDAQ:NVDA) key chips are seeing strong demand, but Wall Street is slowly becoming immune to these numbers. For example, Blackwell generated $184 billion in revenue in 2025 and is expected to reach about $320 billion in 2026.
NVIDIA (NASDAQ:NVDA) is shifting from selling chips to capturing value from AI “token economics,” where performance per watt, latency, and cost per token drive pricing power. In the future, Nvidia can monetize full racks, networking, and software more efficiently. This increases prospects of revenue growth well beyond current expectations.
Baron Opportunity Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2025 investor letter:
“At Baron, we are deep research, evidence-based investors. We are positive about AI because it is real. It is the most significant change to the global economy since the internet itself. Every digital interaction of today forward will have AI as the brains of the application. We have investments across all the layers of the AI stack and spanning industries. Our most successful investments to date have been in the infrastructure or compute layer. We were early investors in NVIDIA Corporation (NASDAQ:NVDA), over four years before the ChapGPT moment of November 2022, and it has been more than a 10-bagger for the Fund. Several of us spent a full day with founder and CEO Jensen Huang in the Fall of 2018, where he went to the white board to teach us about AI and why NVIDIA would win.”
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 the cheapest AI stock.
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