We recently compiled a list of the 10 AI News and Ratings Investors Should Not Miss. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other AI stocks in the news.
As demand for AI-powered applications grows, major tech firms are investing in alternative eneergy solutions to support data center requirements. Amazon, for instance, has committed to nuclear energy projects with X-energy and Dominion Energy, focusing on building small modular reactors (SMRs) to meet the intensive energy needs of its data centers while striving for carbon neutrality. This shift to nuclear energy is expected to help the AWS parent reach its net-zero goals by 2040 while managing the escalating power demands driven by AI and cloud services.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, Apple has previewed several AI enhancements, including integration with ChatGPT for more advanced on-device tasks, such as text generation and question-answering in iOS 18.1. This addition aligns with its approach to cautiously integrate AI, emphasizing user experience improvements while enhancing privacy through device-based processing. The company’s developments aim to increase iPhone appeal and could impact the smartphone market by encouraging upgrades for new AI capabilities.
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: 179
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 7, Jensen Huang, the CEO of the firm, appeared on the No Priors podcast, affirming that he sees AI employees taking on all kinds of roles, including in areas like marketing, chip design, and supply chain, in the coming years. He said that AI workers will be prompted the same way as human employees are today, such as by asking them to perform a mission, providing them with context, and engaging in back-and-forth conversations. Huang further added that companies that use AI to become more productive will likely see better earnings or growth.
Overall NVDA ranks 5th on our list of the AI stocks you should not miss. 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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