5 Best Stocks To Invest In According to AI

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 175

Share price performance from May 30 to September 7: 6.86%

NVIDIA Corporation (NASDAQ:NVDA) offers graphics, computing, and networking solutions both domestically in the United States and internationally, including Taiwan and China. On August 23, NVIDIA Corporation (NASDAQ:NVDA) reported a Q2 non-GAAP EPS of $2.70, beating Wall Street estimates by $0.61. The revenue of $13.51 billion increased 101.6% year-over-year, surpassing market prediction by $2.43 billion.

As of May 30, the share price performance of NVIDIA Corporation (NASDAQ:NVDA) has seen an increase of 6.86%. This, coupled with a more than 100% increased revenue imply that this can be a good stock to invest in, as suggested by AI. According to Insider Monkey’s second quarter database, 175 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), as compared to 132 in the last quarter. Rajiv Jain’s GQG Partners is the most prominent stakeholder of the firm, with almost 13.9 million shares, worth approximately $6 billion.

RiverPark Large Growth Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA): NVDA shares were our next top contributor in reaction to blowout 1Q results and 2Q guidance. The company reported revenue of $7.2 billion and EPS of $1.09, 10% and 18% ahead of expectations. Revenue guidance for 2Q of $11 billion was 53% above expectations. The artificial intelligence arms race kicked-off by generative AI applications ChatGPT and Alphabet’s Bard has generated tremendous demand for Nvidia’s next generation graphic processors.

NVDA is the leading designer of graphics processing units (GPU’s) required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming-focused chip vendor to one of the largest semiconductor/software vendors in the world. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. Following 1Q’s strong results, Jensen Huang, founder and CEO of NVIDIA stated in the company’s press release, “[a] trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”