We recently compiled a list of the 11 Trending AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other trending AI stocks.
The extent to which AI tech may disrupt life as we know it in the coming years is still shrouded in mystery. However, multiple organizations have been making an effort to quantize these changes for a better understanding of the evolving business landscape. For example, the Tony Blair Institute for Global Change, a London-based non-profit group, recently released a report detailing that AI may displace between 1 million to 3 million private sector jobs in the United Kingdom alone in the coming years. However, the report also stressed that the ultimate rise in unemployment will be in the low hundreds of thousands as growth in technology also creates new roles. Estimates from the non-profit suggest that at the peak of AI-led disruption, between 60,000 and 275,000 jobs will be displaced every year over a couple of decades.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
This number was put into larger context by the institute by highlighting that the average number of job losses in the European country over the past decade had been 450,000 a year. The AI-led disruption seems modest compared to these figures, per the report. The report further underlined that a common lesson was that AI was likely to increase the dynamism of the labor market by prompting more workers to leave existing jobs and start new ones. The institute noted that administrative and secretarial jobs would be the most exposed to the new technology, followed by sales and customer service, and banking and finance. The think tank research further claimed that deployment of AI could raise GDP by up to 1% over the next five years, rising to up to 6% by 2035.
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).
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Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 5, news publication Financial Times reported that large financial institutions on Wall Street had loaned more than $11 billion to a niche group of tech firms due to the fact that these firms possessed AI chips made by NVIDIA. These chips are crucial for AI firms that want to develop and train their own AI models. Per the report, firms that provide cloud computing to AI firms are the recipient of this funding, provided by groups like Blackstone, Pimco, Carlyle, and BlackRock, among others.
Overall NVDA ranks 5th on our list of the trending AI stocks on latest news and 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 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.
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Disclosure: None. This article is originally published at Insider Monkey.
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