Top 10 Stocks to Watch After Federal Reserve’s Rate Cut

1. Nvidia Corp (NASDAQ:NVDA)

Number of Hedge Fund Investors: 235

Jeff Kilburg from KKM Financial said in a program on CNBC late July that he was planning to sell Nvidia Corp (NASDAQ:NVDA) shares despite the idea sounding “crazy.” Here is how the analyst explained his decision:

“I want to sell Nvidia. I know it sounds crazy, but Nvidia at a new all-time high of $175. I want to sell Nvidia, take profits and the reason is because of the overconcentration. If you see the NASDAQ, we’ve talked about the NASDAQ right now. It’s on its 65th day of being above its 20-day moving average. So, a little long in the tooth, but this is momentum. This is the V-shaped recovery. So, by selling Nvidia, I want to buy Apple nearly the lagger. Tesla is just below Apple in the MAG 7. So, I think there’s an opportunity. If you want to short Nvidia, this is not for you. You will have a very hard time shorting Nvidia. But there’s an opportunity to either sell or trim position. I blindly bought Nvidia back in April at $92. So I’m taking profits.”

NVDA was trading at around $176 as of July 28, while the stock price is $170 as of September 18.

Nvidia’s Hopper Infrastructure and now Blackwell form the core of AI infrastructure for LLM training and inference. But Nvidia’s growth is slowing compared to previous quarters amid competition and capex spending limitations from major companies. In the recently reported quarter, Nvidia’s annual revenue growth came in at 56%, compared with nearly 100% YoY growth in the past.

With its strong position in the data center market and rising demand, Nvidia is likely to keep growing, though not at the same pace it has in the past. Increasing competition from major companies like Broadcom is also expected to impact Nvidia’s margins in the long term.

Brown Advisory Large-Cap Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:

Information Technology was the largest detractor from relative performance during the quarter. The strategy’s underweight to NVIDIA Corporation (NASDAQ:NVDA) and not owning Broadcom (AVGO) were the two largest detractors during the period. NVIDIA (NVDA), a market leader in advanced graphics processing units, rebounded after a first quarter marked by a lower gross margin outlook, which was attributed to short-term complexities in ramping up Blackwell production, and a broad-based decline in AI infrastructure stocks. The company’s most recent quarterly earnings were modestly ahead of consensus expectations, and management expects gross margins to increase by year-end as yield and throughput on Blackwell racks continue to improve.

While we acknowledge the potential of NVDA to grow, 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.

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