We recently compiled a list of the 14 AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other AI stocks that are on Wall Street’s Radar.
Latest reports from tech news platform TechCrunch indicate that MatX, a chip-design startup focused on supporting large language models, has raised $80 million in a funding round. This follows the $25 million seed round it held less than a year ago. The latest round, led by Spark Capital, values the company at a pre-money valuation in the mid-$200 million range and a post-money valuation in the low $300 million range, per TechCrunch. MatX was co-founded two years ago by former Google TPU team members Mike Gunter and Reiner Pope, who aim to address the global shortage of AI-specific chips.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The company’s chips are optimized for AI workloads of 7 billion to 20 billion parameters or more, providing high performance at lower costs. MatX highlights its advanced interconnect technology, which enhances scalability for large clusters. The co-founders claim their processors are designed to outperform NVIDIA GPUs, with a goal of achieving tenfold efficiency in training LLMs and delivering results. The AI hardware sector has seen growing investor interest amid increasing demand for chips tailored for generative AI.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 21, Argus analyst Jim Kelleher raised the price target on the stock to $175 from $150 and kept a Buy rating on the shares. The company once again blew out aggressive consensus estimates for fiscal Q3, with revenue up over 90% and non-GAAP earnings rising in triple-digit percentages, the analyst told investors in a research note. The advisory looks for growth beyond data center and artificial intelligence in Nvidia’s other end markets of gaming, professional visualization, and automotive.
Overall NVDA ranks 3rd on our list of the stocks on Wall Street’s radar. 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 doing so within a shorter timeframe. 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
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