We recently compiled a list of the 10 AI Stocks Trending On Wall Street Right Now. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other AI stocks.

Determined to lead the AI frontier, China is deploying every resource at its disposal and mobilizing every tool in its arsenal. In the latest news, Reuters has reported how the country is now planning to expand its undergraduate enrollments to prioritize what it called "national strategic needs" and develop talent in areas such as artificial intelligence (AI).

Several of China’s top public universities have announced these plans of expansion following the launch of artificial intelligence courses in February. The country recently experienced a “Sputnik moment” after an AI startup from within the country, DeepSeek, launched a cheaper and more efficient AI model which it claimed outperforms its Western counterparts.

READ ALSO: 10 AI Stocks Investors Are Watching Closely Right Now and 12 AI Stocks Making Headlines: Latest News and Ratings

According to analysts, DeepSeek's success is largely backed by researchers from elite domestic universities. This fact reflects how Beijing's investment in building a large homegrown STEM talent pool and recent U.S. restrictions on Chinese student visas have enabled the country to catch up on the AI race.

“Scientific and technological innovation has contributed to China’s economic growth, with investment in high-tech industries increasing by 11.1 percent year-on-year from January to October 2022”.

- A report by People’s Daily

Innovation has also opened up new areas for China’s economic development, such as renewable energy vehicles, lithium batteries, and photovoltaic products. The country’s scientific and technological innovations have helped it garner global attention, and it looks like it is neck to neck in competition with its competitor, the United States.

Noting the country’s need for further advancement, Peking University recently said it would add 150 undergraduate spots in 2025, focusing on areas of "national strategic importance", fundamental disciplines and "emerging frontier fields". Meanwhile, Renmin University said it would add more than 100 places in areas such as AI to improve innovation.

Shanghai Jiao Tong University will also be adding 150 spots concentrating on "cutting-edge technologies" and emerging industries "urgently needed", in AI, integrated circuits, biomedicine, healthcare and new energy.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.

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 373.4% since May 2014, beating its benchmark by 218 percentage points  (see more details here).

A close-up of a colorful high-end graphics card being plugged in to a gaming computer.

NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 223

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. One of the most notable analyst calls on Monday, March 10, was for NVIDIA Corporation (NASDAQ:NVDA). Morgan Stanley reiterated the stock as “Overweight”, stating that it is sticking with Nvidia as a top idea.

“There is a persistent industry outlook, that even with general investor skepticism, investment in AI remains the bright spot for semis, while we are looking at a very gradual bottoming process in analog, and company WFE [wafer fab equipment] estimates more optimistic than ours. We reiterate our NVDA Top Pick…”

Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $175 implies a 63% upside, however, the Street-high target of $235.9 implies an upside of 120%.

Overall NVDA ranks 3rd on our list of the AI stocks that are trending on Wall Street right now. 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 time frame. 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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

 

Disclosure: None. This article is originally published at Insider Monkey.