We recently published a list of 15 News Updates on AI Taking Wall Street by Storm. In this article, we’ll take a look at where NVIDIA Corporation (NASDAQ:NVDA) stacks up to other AI news updates taking Wall Street by storm.
xAI, the AI startup owned by Elon Musk, is raising more than $6 billion at a valuation of $50 billion, according to a report from news platform CNBC. Most of this money, almost $5 billion, will come from Middle Eastern sovereign wealth funds. The funding will be used to purchase 100,000 NVIDIA chips, according to the media outlet. xAI plans to build a supercomputer with these chips. This supercomputer would later be integrated with other Musk companies, including Tesla, as plans to improve fully autonomous driving continue at a rapid pace.
Learn more about these developments by accessing 10 Best AI Data Center Stocks And 10 Hot AI Stocks According to Goldman Sachs.
CNBC says the billionaire has begun working closely with Donald Trump, the president-elect, on the new White House administration’s approach to AI and technology in general. Trump plans to rename the CHIPS Act and repeal the AI executive order, two major AI initiatives from US President Joe Biden. The tech world is facing the fallout from a change in the U.S. presidency, with Trump expected to raise tariffs on companies doing business with China. He is also expected to urge the country’s technology companies to relocate their manufacturing operations from overseas to the United States.
ALSO READ: 30 The Most Important AI Stocks According to BlackRock And Beyond Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analyzes and press releases. These stocks are also popular among hedge funds. Why are we interested in stocks that hedge funds are piling into? The reason is simple: our research has shown that we can outperform the market by imitating the stocks selected by the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each 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 plugged into a gaming computer.
Market capitalization: $3.6 trillion
NVIDIA Corporation (NASDAQ: NVDA) provides graphics, computing and networking solutions. On November 14, Oppenheimer analyst Rick Schafer raised the stock’s price target from $150 to $175 and maintained an outperform rating on the shares ahead of the quarterly results. The advisory forecasts higher third-quarter results and fourth-quarter outlook, driven by sustained CSP and enterprise demand for AI accelerators. Additionally, Oppenheimer sees significant acceleration in Blackwell’s first quarter. Conversations with investors suggest modeling 5-6 million GPUs next year. The advisory believes that Nvidia is best positioned in the AI space, benefiting from full-stack AI hardware/software.