5 Tech Stocks Benefiting From The AI Boom

In this article, we will be taking a look at 5 tech stocks benefiting from the AI boom. To see more of these stocks, you can go directly to see the 10 Tech Stocks Benefiting From The AI Boom.

5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 132

Morgan Stanley holds an Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) shares as of June 16. The firm also raised its price target on the stock from $450 to $500.

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

NVIDIA Corporation (NASDAQ:NVDA) may be the first stock that comes to one’s mind when looking for AI plays at this time. The company is a leader in generative AI chip-making.

Saltlight Capital mentioned NVIDIA Corporation (NASDAQ:NVDA) in its first-quarter 2023 investor letter:

“In May 2021, we shared our thoughts on AI with a particular focus on NVIDIA Corporation (NASDAQ:NVDA), expressing our belief that it was poised to become a significant enabler of AI technology. At the time, it felt like our insights were being carried away by the wind.

Our thesis hinged on the idea that NVIDIA’s GPUs would form the fundamental computing hardware for neural networks. This hardware would not only develop AI tools and infrastructure but also democratise access to AI technology.

At the end of that letter, we included a substantial excerpt from an interview with NVIDIA’s CEO, Jensen Huang. Looking back, his words now seem eerily prophetic. He suggested, albeit vaguely, a solution to the complexity problem. He said:

“But finally, we have this piece of this new technology called artificial intelligence that can write that complex software so that we can automate it. The whole goal of writing software is to automate something. We’re in this new world where, over the next 10 years, we’re going to see the automation of automation””…(Click here to read the full text)