5 Best Stocks to Buy While the Market Is Down

​2. NVIDIA Corporation (NASDAQ:NVDA)

Analyst Upside Potential: 32.64%

Number of Hedge Fund Holders: 264

​NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Stocks to Buy While the Market Is Down.

​On April 18, Reuters announced that Cerebras Systems, which is a venture capital-backed, Silicon Valley-based company, filed for a US initial public offering. This can mean direct competition for NVIDIA Corporation (NASDAQ:NVDA), as on its website, Cerebras Systems boasts to “stand alone as the world’s fastest AI inference and training platform.” According to Reuters, Cerebras aims to compete with Nvidia with different types of AI chips that don’t rely on high-bandwidth memory.

​The timeline, number of shares, and price of shares are not decided yet. The company says it plans to IPO when the market conditions are favorable. Despite this, Cerebras has already gained some big customers, including OpenAI, Amazon, and Meta. Notably, the company’s deal with OpenAI includes a $20 billion contract under which the ChatGPT creator will deploy 750 megawatts of the company’s chip.

​While the IPO of Cerebras Systems will result in increased competition for Nvidia, with the pace at which the AI chip market has been growing, there’s room for several companies in the space. Moreover, the Street remains bullish on NVDA as 93% of the 70 analysts covering the stock have maintained a Buy rating. The average 12-month price target suggests more than 32% upside from the current level.

​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.