We recently published a list of 10 AI Stocks Everyone is Talking About These Days. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks everyone is talking about these days.
President Donald Trump’s $500 billion investment plan to build AI infrastructure, Stargate, is making waves as analysts believe the project provides a new growth catalyst for major tech companies. Sasha Ostojic, Playground Global venture partner, said in a latest program on CNBC that the plan is just the beginning of AI “renaissance” in the country:
“Stargate is just the beginning, I think, of this renaissance of AI technology in this country, even though it seems like we’ve been in it for a few years. And, you know, it reminds me of the Apollo program from the 50s and 60s. In that case, it was a government-run program that created a bunch of technology, propelled the world forward, created a bunch of companies, and set us up for a lot of prosperity in the decades to follow.”
Ostojic also talked about the Jensen Huang-led company and said its stock has been going “sideways” and the market is waiting for the next big “trigger.” He is bullish on the company and thinks the $500 billion plan with the company at its center could be the next growth catalyst investors were waiting for.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 AI stocks currently trending on the back of the latest news. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Investors: 193
NVIDIA Corporation (NVDA) bull Stacy Rasgon, Bernstein Research managing director, was recently asked on CNBC what could be the biggest competitor to Jensen Huang’s company. The analyst said custom AI chips space, or ASICs, can “outgrow” NVIDIA (NASDAQ:NVDA). However, this does not worry the investor for now.
“I actually do think the ultimate shake is probably NVIDIA Corporation (NASDAQ:NVDA) GPUs, and then for captive workloads at hyperscalers, it’ll likely be ASICs—they’re all working on their own. I suspect ASICs, frankly, will probably outgrow in the sense that they’re coming from a much smaller base. But you can do the math today. If I was, you know, it’s a little bit of monkey math, but I bet ASICs relative to GPUs are probably low double digits—10, 11, 12% of the spend today. Could that number be 20% of a much bigger pie in 5 years? Yeah, I think it could.
But my sense is that’s the likely competition now. Does it worry me? It doesn’t really worry me at this point because I don’t think we’re on the saturated part of the S curve. Things are still growing. So right now, I think the question to ask is, is it a big market or is it not? If it’s a big opportunity, I think there’s room for everybody. If it’s not a big opportunity, then everybody’s in trouble. So I think that’s the question that you want to have confidence in one way or the other. I’ll worry about competition later—I don’t think it’s the time to worry about it now.”
Manole Capital Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“As of this publication, Nvidia is up roughly 150% year-to-date. NVIDIA Corporation (NASDAQ:NVDA) was the largest gainer in the S&P 500 last year and has more than tripled in value over the last year. It hit an eye-opening market capitalization of $3 trillion in June, less than four months after it eclipsed the $2 trillion mark. Enthusiasm for everything AI-related, especially for the primary chip maker whose products are essential to powering AI technology, continues to fuel the market. Last quarter, and for the fifth consecutive quarter, Nvidia reported sales and profits that blew past Wall Street expectations. The stock rose +37% in the second quarter alone.”
Overall, NVDA ranks 1st on our list of AI stocks everyone is talking about these days. While we acknowledge the potential of NVDA, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center