NVIDIA Corporation (NVDA) Named “Top Pick” by Morgan Stanley Despite Short-Term Demand Concerns

December 26, 2024

We recently published a list of 12 AI News and Ratings Investors Are Watching Right Now. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI news and ratings investors are watching right now.

At CNBC’s ‘Money Movers’, Jack Hidary, CEO of Sandbox AQ, emphasized the shift towards B2B-focused AI, positioning it as the next major evolution in artificial intelligence. While language models like those from OpenAI have excelled in consumer applications, Hidary highlighted the untapped potential of quantitative AI (QAI) in driving innovation across industries like pharmaceuticals, automotive, and energy. QAI uses fundamental equations to generate new data, which enables advancements in drug development, materials for energy storage, and aerospace.

Hidary pointed out that large quantitative models are set to transform product development by creating significant economic value, unlike large language models, which primarily reduce operational costs. He predicts that 2025 and beyond will see a growing focus on AI’s role in addressing critical challenges in B2B sectors, from building better batteries to accelerating medical breakthroughs. This evolution underscores a future where AI goes beyond text-based applications, becoming a cornerstone for innovation across various industries.

READ ALSO: 10 AI News Dominating Wall Street Today and 11 Important AI News and Ratings for Investors.

As per a Mckinsey report, An unconstrained future: How generative AI could reshape B2B sales, GenAI is transforming B2B sales by improving efficiency, fostering growth, and reshaping sales operations. While the core role of sellers including building trust, creating value, and minimizing friction remains unchanged, generative AI enables productivity gains through automation, personalized insights, and strategic guidance.

Companies adopting these tools report improved customer experiences, faster sales processes, and new growth opportunities. Looking ahead, AI integration is expected to redefine sales models, emphasizing customer outcomes, long-term success, and collaboration between human and AI-driven agents. To adapt, businesses must embrace agile strategies, invest in AI-driven capabilities, and align their sales approaches with evolving customer expectations.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

NVIDIA Corporation (NVDA) Named "Top Pick" by Morgan Stanley Despite Short-Term Demand Concerns
NVIDIA Corporation (NVDA) Named “Top Pick” by Morgan Stanley Despite Short-Term Demand Concerns

Number of Hedge Fund Holders: 193

NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company that specializes in AI-driven solutions, offering advanced computing platforms, networking technologies, and software for various industries, including gaming, automotive, and data centers.

Morgan Stanley remains optimistic about Nvidia, especially when short-term data appears uncertain but long-term fundamentals remain strong. The firm also named the company its “Top Pick.” Concerns include slower demand for previous-generation Hopper products and staggered availability of Blackwell versions. The firm sees this as a natural phase-out rather than a revenue decline, given a substantial backlog expected to sustain sales for several quarters Despite these challenges, the firm expects strong demand for Blackwell to persist and continues to rate Nvidia shares as Overweight, adjusting the price target slightly to $166 from $168.

Overall, NVDA ranks 4th on our list of AI news and ratings investors are watching right now. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

 

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