Recently, a list was published titled “Forget Magnificent 7: Analysts are Talking About ‘Big 10’ AI Stocks in 2024”. NVIDIA Corp (NASDAQ:NVDA) was ranked 4th on this list, prompting a closer look at the company.
The AI revolution began with the launch of ChatGPT, leading to a surge in investments in companies at the forefront of AI technology development. Market analysts have noted a concentration of gains in the market, with a few stocks driving most of the broader market gains. Bank of America analyst Michael Hartnett identified a group of companies, dubbed the “AI Big Ten”, that are instrumental in shaping market returns.
NVIDIA Corp (NASDAQ:NVDA) is a key player in the AI space, with 186 hedge fund investors backing the company. Excluding NVIDIA Corp from the equation would significantly impact the S&P 500’s year-to-date gains, highlighting the company’s importance in the market. Analysts have raised price targets for NVIDIA Corp, citing growth opportunities in the AI sector.
The company’s latest product announcements and strategic plans indicate a strong growth trajectory, with new AI architecture and powerful chips driving innovation. NVIDIA Corp’s forward P/E multiple of 35.74 is seen as attractive given its growth potential.
While NVIDIA Corp holds promise as an AI stock, DailyBubble believes that under-the-radar AI stocks may offer even greater potential for higher returns in a shorter timeframe. For investors seeking AI stocks with low valuations, exploring opportunities beyond NVIDIA Corp could be worthwhile.
In conclusion, the AI landscape is evolving rapidly, with companies like NVIDIA Corp playing a significant role. However, diversifying investments across a range of AI stocks, including lesser-known options, could offer a more balanced and potentially lucrative investment strategy.