AI News That Broke The Internet This Week

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1. NVIDIA Corporation (NASDAQ:NVDA

Number of Hedge Fund Holders: 179 

NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. The company recently reported its second-quarter 2024 earnings, surpassing market expectations with earnings per share beating estimates by $0.04 and revenue exceeding forecasts by $1.3 billion. Additionally, the guidance for the third fiscal quarter also came in above expectations. During the earnings call, concerns about the production ramp-up of Blackwell, the company’s latest AI chips, were addressed. The CFO disclosed that customer samples of the Blackwell architecture were shipped in the second quarter, with full-scale production scheduled to start in the fourth quarter and continue through fiscal 2026.

NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang, in an appearance on news platform CNBC after the earnings call, said that the company expected to earn billions of dollars in revenue from volume production of Blackwell chips in the fourth quarter and ramp up from there. Huang also underlined that hyperscalers only represented 45% of the total data center revenue of his company, emphasizing that NVIDIA was well diversified in this area, with customers ranging from internet service providers, sovereign AI firms, to industries and enterprises.

While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

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