We recently compiled a list of Top 20 AI News and Analyst Ratings. In this article, we’ll take a look at where NVIDIA Corporation (NASDAQ:NVDA) stacks up to other trending AI stocks.
Artificial intelligence (AI) startups have taken the world of finance by storm in recent months. This interest was sparked by California-based OpenAI’s blockbuster launch of ChatGPT in late 2022. Since then, OpenAI has raised tens of billions of dollars in new funding and reached a valuation of more than $150 billion. OpenAI revealed earlier this week that it had secured over $6.6 billion in new funding through a funding round led by prominent names such as Thrive Capital, Khosla Ventures, and Tiger Global, among others.
Learn more about these developments by accessing 10 Unsexy AI Stocks According to Goldman Sachs And 10 Hot AI Stocks According to Goldman Sachs.
Perhaps one of the reasons the startup is so popular is that it projects revenue of more than $3.5 billion this year and more than $11 billion in 2025. Startups d AI in general have been quicker to generate revenue than previous tech booms, according to an analysis of payment information. by the fintech company Stripe. The report highlights that leading AI groups reach millions of dollars in sales in a year. This timeline is much faster in the lifecycle of a startup than that of comparable non-AI technology groups. The report draws on annual revenue data from the 100 most profitable private AI companies using Stripe, compared to a comparable basket of leading Software-as-a-Service (SaaS) startups as of July 2018.
The report has gained popularity as Stripe’s clients include OpenAI, Anthropic, Mistral, GitHub, and Midjourney, among others. Stripe claims, according to the Financial Times, that AI start-ups took an average of 11 months to reach $1 million in annual revenue after their first sales on Stripe, compared to 15 months for the previous generation of SaaS companies. AI startups that have reached annual revenue of more than $30 million reached this milestone in 20 months, five times faster than previous SaaS companies. Emily Sands, chief information officer at Stripe, points out that unlike previous generations of software companies, AI companies were paying compute costs up front and were under pressure to accelerate monetization.
Learn more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention to And 20 industrial stocks already riding the AI wave.
Our methodology
For this article, we selected AI stocks based on the latest news and analyst ratings. 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.
NVIDIA Corporation (NASDAQ:NVDA)
Number of hedge fund holders: 179
NVIDIA Corporation (NASDAQ: NVDA) provides graphics, computing and networking solutions. Jensen Huang, the company’s CEO, recently appeared on news platform CNBC to discuss a partnership his company was entering into with IT company Accenture. During discussions around Blackwell – the newest, fastest and most powerful AI chip developed by NVIDIA that recently experienced production delays – Huang revealed that Blackwell is now in full production and demand was insane because everyone wanted a lot of these tokens and I also wanted to be the first to get them. Regarding the Accenture partnership, Huang said AI will drive companies to develop innovation faster.
JPMorgan is overweight NVIDIA Corporation (NASDAQ:NVDA) stock with a price target of $155. In a recent investor note, issued after hosting a meeting with the chipmaker’s investor relations, the notice emphasized that NVIDIA remains on track to deliver its new Blackwell graphics processing unit platform. generation into high-volume production in the fourth quarter, with the company still waiting several billion. Blackwell’s revenue dollars during this period. The note also cautions investors against paying too much attention to the noise surrounding rack-wide chip portfolio changes.
Global NVDA ranks 1st on our list of trending AI stocks right now. While we recognize the potential of NVDA as an investment, our belief lies in the belief that certain AI stocks hold more promise in terms of higher returns in a shorter time frame. If you’re looking for an AI stock that’s more promising than NVDA but is trading at less than 5x earnings, check out our report on cheapest AI stock.
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Disclosure: None. This article was originally published on Initiated Monkey.