5 Generative AI Stocks To Watch Amidst Copyright Concerns

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 132

Upside Potential: 13.94%

Average Analyst Price Target: $480.61

NVIDIA Corporation (NASDAQ:NVDA) is vital to the operation of OpenAI’s ChatGPT since the company’s GPUs are being used to train the chatbot. Lawsuits against OpenAI and other generative AI companies relying on NVIDIA Corporation (NASDAQ:NVDA) may thus spell bad news for the chipmaker as well.

In the first quarter, 132 hedge funds held stakes in NVIDIA Corporation (NASDAQ:NVDA). Their total stake value was $12.3 billion.

John Vinh at Keybanc holds an Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) shares as of July 11. He also raised his price target on the stock from $500 to $550.

Artisan Partners mentioned NVIDIA Corporation (NASDAQ:NVDA) in its second-quarter 2023 investor letter:

“Top contributors to performance for the quarter included graphics semiconductor company NVIDIA Corporation (NASDAQ:NVDA). Nvidia rose after reporting strong results and forecasting significantly higher data center revenues for the coming quarter, driven by rising artificial intelligence investments around the world.

When we are successful in achieving disproportionate equity outcomes, we need a process for managing them. Entering this year, we had a ~6.5% position in Nvidia. Due to the enthusiasm for generative AI and a rapid conclusion to “cloud optimization,” the stock has surged 189.5% this year including 52.31% in Q2. We retained an investment in Nvidia with less capital at risk, an approach which afforded us the potential to prudently participate in excellent investments over long periods of time. Notably, despite our gradual position reductions, Nvidia has contributed 1491bps to performance since inception. In turn, these value pathways form the foundation upon which our risk management framework rests, and put us in position to execute our investment program in future periods of duress.”