NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks to Keep on Your Radar. On February4, Wolfe reiterated the stock as “Outperform,” urging investors to be patient with Nvidia shares. The firm believes Nvidia’s valuation has become compelling once more, and that its long-term earnings trajectory remains intact.
Our positive call on NVDA (we added NVDA to the Wolfe Alpha List last month) is based on our view of fundamentals, and not about seasonal trading trends.
Wolfe highlighted how “over the past 3 years, the majority of NVDA’s performance occurred in the Jan-Aug timeframe,” but that the seasonal trend only “perhaps help[s] to explain the stock’s underperformance over the last 2 quarters.”
The firm sees a clear path to upside in estimates for CY26 and CY27 for the AI chipmaker. This is driven partly by continued unit growth, but also particularly because of pricing tailwinds as Rubin and Rubin Ultra ramp.
Photo by Javier Esteban on Unsplash
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.