We recently released a list of 10 AI stocks poised for significant growth. In this article, we focus on NVIDIA Corporation (NASDAQ:NVDA) and evaluate its position among other promising AI stocks. AI (Artificial Intelligence) has evolved beyond a mere buzzword, permeating daily life and business operations. This growth signals opportunities for investors, as leading companies show strong potential for long-term gains. Whether seeking portfolio diversification or investing in future tech, this guide highlights top AI stocks to watch. AI stocks experienced remarkable gains recently, especially in 2024, fueled by rapid AI application growth. Current declines, driven by geopolitical tensions, may present a buying opportunity. AI's applications are vast. In a CNBC interview, Ark Invest’s CEO/CIO Cathie Wood expressed strong confidence in AI despite recent stock weaknesses. She likened AI’s present stage to the internet in the early-to-mid-1990s, foreseeing near-term robotaxi developments and long-term humanoid robots. Wood emphasized healthcare as an underrated AI domain, particularly sequencing technology that reads DNA, where AI accelerates data analysis and medical breakthroughs. Generative AI currently dominates interest. It delivers tailored responses based on real data, sparking a $200 billion annual investment cycle led by the "magnificent 7" tech giants fiercely competing for dominance. Another emerging AI theme involves large language models (LLMs), which Morgan Stanley reports are supported by advanced chips and superior software to provide vital AI solutions for consumers and enterprises. Initially, LLMs were used for content creation, summarization, and categorization, but experts see substantial untapped potential in applying AI-driven reasoning to enterprise data. Our Methodology: To identify AI stocks likely to skyrocket, we started by analyzing AI ETFs to build an initial list, selecting those with the highest upside based on Wall Street analysts’ average price targets.

Hedge fund sentiment as of Q4 2024 was also factored in. Data is current as of April 21, 2025. At Insider Monkey, we focus on stocks favored by hedge funds because replicating top hedge fund stock picks has historically outperformed the market. Our quarterly newsletter picks 14 small-cap and large-cap stocks and has returned 373. 4% since May 2014—218 percentage points above its benchmark. NVIDIA Corporation (NASDAQ:NVDA) Upside Potential: 74. 26% Number of Hedge Fund Holders: 223 NVIDIA is a leader in accelerated computing, offering a platform combining GPUs, software, and tools that fuel breakthroughs in AI, data processing, scientific research, and 3D visualization across industries. Its GPUs are crucial for powering AI technologies such as deep learning in autonomous systems, with over 75% of top supercomputers worldwide relying on NVIDIA GPUs. In gaming, NVIDIA enhances experiences for both players and content creators. It is also investing heavily in AI for self-driving cars. On April 16, Mizuho Securities reaffirmed its “Outperform” rating on NVIDIA with a $168 price target, despite recent U. S. export restrictions limiting sales of its H20 series products to China and embargoed nations, potentially impacting $5. 5 billion of estimated $16 billion in orders. Nevertheless, Mizuho remains confident, citing shipments of the GB200 series, increased GPU testing capacity, and significant AI capital investments planned for 2026. NVIDIA’s leadership in AI, data centers, and gaming positions it well for sustained growth in large markets including AI and robotics. NVIDIA ranks second on our list of AI stocks set to soar. While its growth potential is undeniable, we believe the broader AI sector offers opportunities for high returns over shorter periods. Some AI stocks have outperformed NVIDIA in 2025, even as popular peers declined around 25%. For those seeking a more attractive AI investment trading under five times earnings, see our report on 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 originally appeared at Insider Monkey.