5 Semiconductor Stocks with Highest Upside Potential Right Now

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1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 264

Upside Potential: 39.6%

NVIDIA Corporation (NASDAQ:NVDA) is one of the best semiconductor stocks with the highest upside potential right now. TD Cowen lifted the price target on NVIDIA Corporation (NASDAQ:NVDA) to $275 from $235 on May 15, reiterating a Buy rating on the shares.

The rating update came as part of an off-cycle compute semiconductor earnings preview, with the firm telling investors in a research note that AI capex dollars are continually moving higher as investors seek the next “bottleneck” to infrastructure builds. It further stated that these circumstances have driven a “bifurcation within the infrastructure trade” as the largest accelerator companies underperform while optical names trade higher on expectations of coming shortages. The firm raised estimates citing ongoing momentum, adding that it now sees $1.3 trillion in data center silicon spending by 2030, up from the previous $1.2 trillion.

In a separate development, Cantor Fitzgerald lifted the price target on NVIDIA Corporation (NASDAQ:NVDA) to $350 from $300 on May 14, reiterating an Overweight rating on the shares.

NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures computer graphics processors, chipsets, and other multimedia software. It operates in the Compute & Networking and Graphics Processing Unit (GPU) segments.

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.

READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.

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