We recently published a list of 10 Buzzing AI Stocks on Latest Analyst Ratings and News. In this article, we are going to take a look at where NVIDIA Corp (NASDAQ:NVDA) stands against other buzzing AI stocks on latest analyst ratings and news.
CJ Muse, Cantor Fitzgerald analyst, explained in a latest program on CNBC that the AI investment cycle is different from the ones we have seen in the past. Muse believes major technology companies investing billions in AI are generating “meaningful” free cash flows.
“This cycle is unlike any other. I think most investors look back to the advent of the internet and how long the internet infrastructure investment cycle played out. But this one’s very different. The companies making the investments, predominantly the hyperscalers, are generating meaningful free cash flow despite spending hundreds of billions of dollars building out AI. Let’s be clear: this is existential for these companies as they all try to get to AGI. I think this is a multi-year investment cycle.”
The analyst talked about the latest AI model released by OpenAI and said the race is now to reach artificial general intelligence (AGI) and companies would require more and more computing power to improve the reasoning capabilities of AI systems.
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For this article, we picked 10 AI stocks currently making headlines on the back of latest analyst ratings and important news. With each stock, we have mentioned its hedge fund sentiment. 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 Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 193
Megan Brantley from LikeFolio in a recent program of Schwab Network said the latest pullback in NVIDIA Corp (NASDAQ:NVDA) shares is a “gift” for long-term investors. She believes the company is firing on “all cylinders.” She did point out some challenges for NVIDIA Corp (NASDAQ:NVDA) in the near term:
“We don’t see many signs of weakness here other than a couple of concerns, such as antitrust concerns in China and potentially some production delays. But from a consumer perspective and from a user perspective of its actual technology and GPUs, we see demand continuing to build and grow.”
The analyst also talked about Blackwell:
“We see a lot of traction and a lot of speculation about the impact of its Blackwell GPUs, especially in 2025, and so we think that’s a really important segment to watch. Conversations and consumer searches related to that Blackwell series continue to rise year-over-year.”
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 3rd on our list of buzzing AI stocks on latest analyst ratings and news. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
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