10 AI Stocks That Will Skyrocket has recently been published. This article examines NVIDIA Corporation (NASDAQ: NVDA) and its position compared to other promising AI stocks.
The Rise of AI in Daily Life
Artificial Intelligence (AI) is no longer just a trend; it’s becoming integral to our daily activities, influencing everything from applications to business operations. For investors, this presents significant opportunities, as companies showing real potential for long-term profits are leading the AI charge. This article highlights some of the most promising AI stocks to keep an eye on. Despite the recent dip in AI stocks, attributed to geopolitical tensions, now may be an excellent time to consider investing in this sector.
Cathie Wood’s Optimism on AI
In a CNBC interview, Cathie Wood, CEO and CIO of Ark Invest, expressed her bullish outlook on the AI sector despite recent challenges. She likens the current AI landscape to the internet’s early days in the 1990s, foreseeing vast untapped potential. Wood has confidence in immediate opportunities like robotaxis and long-term uses of humanoid robots but emphasizes healthcare as the most underappreciated area for AI, particularly in disease treatment and DNA sequencing technology.
The Surge of Generative AI
A significant focus within AI right now is Generative AI, which provides customized responses based on real data. This sector has sparked an enormous investment cycle, exceeding $200 billion annually, led by major tech companies. As competition intensifies for dominance in Generative AI, leaders are prioritizing high-performing chips and top-tier software to create essential AI solutions for both enterprises and consumers.
The Analysis Behind AI Stock List
To create the list of AI stocks with the greatest potential for growth, we analyzed AI ETFs to generate an initial pool of stocks and then selected those expected to have the highest upside based on average price targets from Wall Street analysts. We have also included information about hedge fund sentiment regarding each stock as of Q4 2024.
NVIDIA’s Strong Market Position
Upside Potential: 74.26%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ: NVDA) is a leader in accelerated computing, providing a broad platform of GPUs, software, and development tools. Its technology is crucial for AI applications in diverse industries, boasting that over 75% of the world’s top supercomputers utilize its GPUs. NVIDIA is also significantly investing in AI for self-driving technology.
Future Outlook for NVIDIA
On April 16, Mizuho Securities reaffirmed its “Outperform” rating on NVIDIA with a price target of $168, despite new US export restrictions on its H20 series to China and other nations. This may affect $5.5 billion in revenue out of an estimated $16 billion in orders. However, optimism remains for NVIDIA’s prospects, sustained by the impending launch of the GB200 series and robust capital investment in AI for 2026, positioning NVIDIA for long-term growth across significant markets.
Conclusion and Further Exploration
In summary, NVDA ranks 2nd in our list of promising AI stocks. While NVDA demonstrates strong growth potential, our analysis indicates AI stocks are also likely to deliver substantial returns over shorter timeframes. For those interested in AI stocks that offer potential value at a lower price, consider exploring our report on the 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 was originally published on Insider Monkey.
