5 Best Stocks to Buy for the AI Boom in the Second Half of 2026

3. Nvidia Corp (NASDAQ:NVDA)

Number of Hedge Fund Holders: 275

Stock Upside Potential: 56.92%

Nvidia Corp (NASDAQ:NVDA) is one of the best stocks to buy for the AI boom in the second half of 2026. Nvidia stock is a favorite of elite investors, as some 275 hedge funds have positions in this AI chip stock.

On July 7, Reuters reported that Chinese tech startup DeepSeek is developing its own AI chips to reduce its reliance on Nvidia chips. That report shook Nvidia stock, with shares slipping about 1.6% in premarket trading.

However, according to Richard Windsor, analyst at Radio Free Mobile, DeepSeek’s effort is unlikely to materially affect Nvidia’s AI chip business. First, Windsor noted that Nvidia is “at zero in China and staying there,” referring to Nvidia’s already shrinking business in China due to US restrictions on chip exports.

Second, Windsor commented that DeepSeek has almost zero chance of challenging Nvidia outside China. Not only is China shut out of the world’s most advanced chip manufacturing capabilities, but designing perfect AI chips takes years and requires massive capital.

Nvidia Corp (NASDAQ:NVDA) is an American global semiconductor company. It builds powerful computer chips with a broad variety of applications. Nvidia chips are widely used to train and run large AI models. Nvidia also provides various software solutions to the AI industry.