Nvidia Corporation (NASDAQ:NVDA) is the top stock on our list of the most fantastic stocks every investor should pay attention to. The company is expected to report earnings on November 19, and, as was the case for some recent quarters, Nvidia’s earnings will serve as a bellwether for the trajectory of AI and high-performance computing demand.
In a note on Monday, November 10, UBS analyst Timothy Arcuri stated that he expects Nvidia Corporation (NASDAQ:NVDA) to guide for revenue of $63 billion to $64 billion for the fourth quarter. But he believes there is a potential for an upside surprise. He reaffirmed his positive stance on Nvidia Corporation (NASDAQ:NVDA) with a Buy rating and a price target of $235.
Despite its massive size, Nvidia’s stock has appreciated 37% YTD, adding over $1 trillion in market capitalization. However, the company’s meteoric rise has drawn scepticism from several investors, including hedge fund manager Michael Burry, who had recently disclosed a minor short position on the stock.
This sentiment was echoed by Max Wasserman, Co-Founder & Senior Portfolio Manager at Miramar Capital, during a discussion on short positions on Nvidia and Palantir in a November 4 Yahoo Finance interview. He remarked:
“These are great companies, but the rate of growth is being valued in perpetuity. So, any hiccup in that is going to send these stocks into a correction. And we are not talking of a 5% correction; when the NASDAQ pulls back, it can drop 20%, 30% in a heartbeat.”
Nvidia Corporation (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system-on-a-chip (SoC) units, and AI hardware and software.
While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.