Is NVDA the best AI stock? (2024)

Is NVDA the best AI stock?

Nvidia is the dominant AI chip player today. The company's recipe for winning a large majority of that market has been a combination of cutting-edge chips and proprietary software that gets the most computing performance out of those chips. It's estimated that Nvidia now controls as much as 90% of the AI chip market.

Nvidia has been an amazing stock to own over the past few years, generating incredible returns for investors. But the risk is that expectations may be too high for the stock, especially with respect to artificial intelligence (AI).

Nvidia's well-timed shift from gaming and graphics GPUs to making high-powered H100 AI chips has allowed the company to dominate the industry.

Nvidia Corporation (NVDA)

NVDA is the best-performing AI stock over the past year. Earnings per share, or EPS, had a big leap higher in 2023, and analysts project strong EPS growth going forward. It has the highest forecasted 5-year EPS growth on the list.

As expensive as Nvidia's stock is, the sheer potential in AI suggests investors should remain bullish on it as an investment. The technology is still in its early stages, and companies are just beginning to develop AI models.

NVDA Stock 12 Month Forecast

Based on 41 Wall Street analysts offering 12 month price targets for Nvidia in the last 3 months. The average price target is $1,004.92 with a high forecast of $1,400.00 and a low forecast of $620.00. The average price target represents a 14.96% change from the last price of $874.15.

Which stock is best for 2025?

LSTM, short for Long Short-term Memory, is an extremely powerful algorithm for time series. It can capture historical trend patterns, and predict future values with high accuracy.

Quantum AI

Within 10 years, accessibility to quantum computing technology will have increased dramatically, meaning many more discoveries and efficiencies are likely to have been made. The emergence of quantum computing is likely to also create significant challenges for society, and by 2024, these could be hot topics.

Huawei developed the Ascend series of chips as a rival to Nvidia's line of AI chips. The Chinese company's main product, the 910B chip, is its main rival to Nvidia's A100 chip, which launched roughly three years ago. Analysts have estimated China's AI chip market to be worth $7 billion.

Nvidia currently dominates the market for graphics processing units, or GPUs, used for running computationally intensive AI workloads. But AMD has proven to be an able fast-follower. AMD's Instinct MI300 series accelerators provide a viable alternative to Nvidia's current H100 GPU, analysts say.

While competition in the chip space is rising, Nvidia is already making many moves in other areas of the AI realm. Despite its premium valuation, Nvidia stock could still be a lucrative opportunity for long-term investors.

Buffett owns two AI stocks in his Berkshire Hathaway portfolio. He has positions in six other AI leaders thanks to Berkshire subsidiary New England Asset Management.

Some of the best AI stocks that you can buy with less than $5 are Nerdy (NRDY), BigBear.ai Holdings (BBAI) and FiscalNote (NOTE). These stocks are poised to see considerable growth in the future.

Musk is also using xAI to pursue a more worldly goal: joining forces with his social-media company X. The AI company, for example, says it has an advantage of having access to X's trove of posts. And xAI's flagship product, the chatbot Grok, is available only to users who pay for a subscription on X.

What is the best AI penny stock?

The most popular AI-focused stocks on the NYSE or the Nasdaq for March 2024 include AMD, Apple, NVIDIA, Amazon, and Intel.

SoundHound AI is a technologically advanced platform developed by SoundHound Inc., a company specializing in sound recognition and voice search. The primary focus of SoundHound AI is to enable computers and devices to comprehend and engage with sound, music, and voice inputs effectively.