We recently published a list of ChatGPT Stock Advice: Top 12 Stock Recommendations. In this article, we will take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other top stock recommendations by ChatGPT.

After a two-year surge of 53%, the stock market has been taken for a wild ride in 2025, driven by uncertainties surrounding the escalating trade wars. As of the close of business on May 2, the broad market index was down by 3.31% year-to-date.

READ ALSO: 11 Worst Performing Stocks in S&P 500 So Far in 2025 and 15 Stocks ChatGPT Predicts Could Make You Wealthy in 10 Years.

A New York-based investment banking firm recently projected positive but muted returns for 2025. However, it added that the continued adoption of AI could lead to a strong rally. The company also pointed out how bull markets have historically produced mediocre results in the third year, although not usually negative.

Trends over the past decades also show that sustained high returns are uncommon. Following the strong back-to-back performance in the 1920s, markets went down sharply in 1929, marking the beginning of the Great Depression. Then, after recovering in 1935 and 1936, they took a giant step back again a year later.

Over the years, many investors have turned toward ChatGPT for investment advice, including how the markets would respond to news headlines, statements from the Federal Reserve, or any other event that could cause share price movements. A 2023 survey revealed that about 53% of the Millennials, 50% of Gen Z, and 46% of  Gen X respondents had used the AI chatbot for investing advice.

In contrast, older Americans were found to be more skeptical of the recommendations, with just 25% of the Baby Boomers using ChatGPT to buy stocks. Collectively, about 47% of all survey respondents had used the platform for stock recommendations. Among them, 69% stated they would consider using ChatGPT for investment advice in the future as well.

While the reliability of ChatGPT to provide accurate and up-to-date information has repeatedly come under question from most financial analysts, a professor at the University of Florida in 2023 claimed that the chatbot may be able to predict stock movements. Alejandro Lopez-Lira used the platform to parse negative and positive headlines for stocks and predict returns for the following day, and was surprised to find how good the results were.

Whether or not tools like ChatGPT are effective in stock recommendations remains a debate. However, they can be useful for new investors looking for financial education and researching companies they want to invest in.

Our Methodology

For this list, we prompted ChatGPT to recommend the top 12 stocks based on its assessment of historical trends and the current market situation. The stocks are ranked in this article in the same order as provided by ChatGPT. The platform said it based its rankings on several factors, including long-term past performance, innovation capacity, economic resilience, and current macroeconomic trends.

For perspective, we have also shared the hedge fund sentiment toward each stock, based on Insider Monkey’s database of over 1,000 prominent hedge funds as of Q4 2024.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 223

NVIDIA Corporation (NASDAQ:NVDA) is a full-stack computing infrastructure company. It is the go-to company for firms looking for GPUs and semiconductors as they increase spending on artificial intelligence, which has been a significant catalyst behind the chipmaker’s growth.

Its market value surged more than $2 trillion last year to reach $3.28 trillion at the close of 2024, representing an increase of over 170% from its market value at the end of 2023. However, 2025 has been a challenging year, with NVIDIA Corporation (NASDAQ:NVDA)’s shares down nearly 15% YTD.

The company has faced pressures amid increased competition from China’s DeepSeek, concerns about the sustainability of AI infrastructure spending, and ongoing trade tensions. However, history suggests the stock could rebound. NVIDIA Corporation (NASDAQ:NVDA) has had several significant drawdowns over the past decade, but managed to bounce back in the following years.

Investor confidence remains strong. South Korea is planning to buy 10,000 high-performance GPUs this year to build a national AI computing center, which will include NVIDIA Corporation (NASDAQ:NVDA)’s H100 and H200 GPUs. Moreover, the company is also making investments in quantum computing and is setting up a research lab in Boston, where it will collaborate with scientists from Harvard and MIT.

Mar Vista U.S. Quality Select Strategy established a position in NVIDIA Corporation (NASDAQ:NVDA) following the pullback. The firm stated the following in its Q1 2025 investor letter:

“We initiated a position in NVIDIA Corporation (NASDAQ:NVDA) following a significant pullback in the stock. The decline was prompted by concerns stemming from the emergence of DeepSeek, an unknown Chinese AI software company, which unveiled a highly efficient large language model (LLM). DeepSeek’s breakthrough raised investor fears that U.S. hyperscalers might reduce their capital expenditure plans due to a shift toward more resource-efficient AI models. This led to concerns over potential overcapacity in the AI infrastructure market, weighing heavily on NVDA’s stock.

As a result, NVDA shares declined nearly 30% from recent highs, presenting an attractive entry point. On our cost basis, NVDA was trading at approximately 25x expected 2025 earnings and 20x expected 2026 earnings, valuations we found compelling for a company projected to grow revenue and earnings by over 50% in calendar year 2025. We viewed this risk-reward profile as favorable, especially given NVIDIA’s dominant position in powering the transition to accelerated computing architecture that powers the AI ecosystem.”

According to ChatGPT stock advice, NVIDIA Corporation (NASDAQ:NVDA) is one of the best companies to invest in.

Overall, NVDA ranks 5th among ChatGPT Stock Advice: Top 12 Stock Recommendations. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.