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NVIDIA (NVDA) Unveils Tech Plans to Speed AI Chip Communication

We recently published a list of 15 AI Stocks Surging on News and Analyst Ratings. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks that are surging on news and analyst ratings.

According to an analysis by global management consulting firm McKinsey & Company, data centers are projected to require $6.7 trillion in capital expenditures worldwide by 2030 to keep up with the demand for compute power.

Those data centers that are equipped to handle AI processing loads are projected to require $5.2 trillion in capital expenditures. Meanwhile, those powering traditional IT applications are projected to require $1.5 trillion, totaling up to a staggering figure close to $7 trillion.

READ NEXT: 11 AI Stocks On Wall Street’s Radar and 10 Trending AI Stocks on Wall Street Right Now

The report further claims that the companies that anticipate compute power demand and invest accordingly will win the AI-driven computing era. By proactively securing critical resources such as land, materials, energy capacity, and computing power, they would have the potential to gain a significant competitive edge.

Different analysts seem to have differing perspectives on this $7 trillion figure. Wes Cummins, CEO of Applied Digital, believes that the $7 trillion estimate appears to be “on the high end.”

“If we’re talking just the next five years, I think that’s a hard number to hit, just from the practicality of building and finding enough power.”

On the other hand, Steven Lim from NTT Global Data Centers asserted that the large figure is not that far-fetched.

“If we have an idealized situation and a consistent demand curve that we see today, then $7 trillion is not out of bounds.”

While the opinions on the feasibility of this estimate may vary, one thing that is clear is that the race to build AI-ready infrastructure is accelerating. As the demand for compute power surges to new heights, the ability to scale efficiently will determine which companies will lead the AI era and which ones will fall behind.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is 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) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. On May 19, the company revealed that it plans to sell a technology that will tie chips together, accelerating the chip-to-chip communication needed to build and deploy artificial intelligence tools.

On the same day, it launched a new version of its NVLink tech called NVLink Fusion. Nvidia will sell the NVLink Fusion to other chip designers to help build powerful custom AI systems with multiple chips linked together. Companies looking to adopt the NVLink Tech called Fusion for their custom chip efforts include Marvell Technology and MediaTek.

In other news, CEO Jensen Huang has also announced the company’s plan to build a Taiwan headquarters in the northern suburbs of Taipei.

Overall, NVDA ranks 3rd on our list of AI stocks that are surging on news and analyst ratings. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, 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.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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