Is NVIDIA Corporation (NVDA) The Best Fast Growing AI Stock To Buy Right Now?
We recently compiled a list of the 8 Fastest Growing AI Stocks To Buy Right Now. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other high-growth AI stocks.
The rapid growth of artificial intelligence (AI) continues to reshape industries around the world, and experts are closely monitoring its trajectory. In December 2024, Roosevelt Bowman, Senior Investment Strategist at Bernstein Private Wealth Management joined 'Wealth' hosted by Yahoo Finance to share his insights on the AI landscape heading into 2025. Bowman predicts that AI will move beyond its current focus on semiconductors and cloud computing. He expects that it will expand into power infrastructure and cooling technologies, which play a crucial role in running large-scale AI models effectively.
Bowman also highlighted that AI models have tremendous power requirements of AI data centers. He emphasized the need for reliable energy sources to meet these demands and noted that this could lead to new market opportunities in sectors that support AI's operational needs.
READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 10 Unrivaled Stocks of the Next 5 Years.
On February 28, 2025, Alex Zukin, managing director and head of software research at Wolfe Research joined Market Domination Overtime on Yahoo Finance to discuss the evolving role of AI in the software industry. Zukin noted that 2025 could be a pivotal year for software companies to unlock the real value of AI.
He pointed out that AI technology is moving extraordinarily quickly. Zukin expects this year to mark a turning point as companies start to implement AI solutions into production and unlock benefits. However, he cautioned the companies not to overpromise on artificial intelligence.
Zukin also told Yahoo Finance about the seasonality of the enterprise software market. The first quarter is typically difficult, but he expects growth to accelerate in the second half of 2025.
Beyond software, there is significant potential for AI to drive innovation across various industries.
To compile our list of the 8 fastest-growing AI stocks to buy right now, we looked for the largest and most popular AI companies. We reviewed Insider Monkey's database of prominent AI stocks, financial media reports, ETFs, and various online resources to compile a list of more than 30 AI stocks. To look for the fastest-growing AI stocks, we narrowed down our list to companies with a compound annual growth rate (CAGR) in revenue exceeding 10% over the past 3 years and a year-over-year revenue growth rate of more than 25%. Next, we focused on the top 8 fastest-growing AI stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey's Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 8 fastest-growing AI stocks to buy right now were ranked in ascending order based on the number of hedge funds holding stakes in them, as of Q4 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
Year-Over-Year Revenue Growth Rate: 114.20%
3-Year Revenue CAGR: 69.25%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is an American multinational corporation and technology company that designs and manufactures AI-driven solutions, advanced chips, systems, and software. The company's graphics processing units (GPUs) are used in AI solutions and are considered the backbone of AI infrastructure. NVIDIA Corporation (NASDAQ:NVDA) is one of the fastest-growing AI stocks to invest in.
On February 27, 2025, Bernstein analyst Tom O'Malley increased the firm's price target for NVIDIA Corporation (NASDAQ:NVDA) from $175 to $185 and maintained an 'Outperform' rating. The analyst noted that the company's Q4 results were 'very solid,' highlighting record data center revenues of $35.6 billion. This performance was driven by a rapidly accelerating Blackwell ramp-up. O'Malley viewed NVIDIA Corporation's (NASDAQ:NVDA) Q1 guidance as 'fine,' noting it exceeded revenue expectations and was roughly in line with earnings forecasts. The earnings call was described as 'relatively quiet,' suggesting NVIDIA Corporation (NASDAQ:NVDA) has overcome its main production challenges with all Blackwell configurations now in full production.
Overall, NVDA ranks 1st on our list of the fastest-growing AI stocks to buy right now. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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