From Yahoo Finance: 2025-04-26 10:29:00

In a recent article, we highlighted the top 10 stocks to watch ahead of May, with a focus on NVIDIA Corporation’s performance against other top stocks. Aswath Damodaran, the ‘Dean of Valuation,’ warned against reactionary investing based on daily events, emphasizing the importance of long-term strategy over short-term trends.

Damodaran suggested that the challenges faced by major tech companies may benefit the ‘Mag 7’ companies in the long run, emphasizing their flexibility and adaptability. He advised investors not to give up easily on these companies, despite the uncertainties in the market.

Kevin Hincks from TD Ameritrade noted that NVIDIA’s demand remains strong, citing positive numbers from the fourth quarter and ongoing confirmation of high demand for chips. He highlighted the potential of NVIDIA’s pipeline and speculated on future innovations that could drive further growth for the company.

NVIDIA is facing competition from major players like Apple, Qualcomm, and AMD for access to TSMC’s 3nm capacity, which could impact its chip supply. Other giants like Amazon and Apple are also developing their own AI chips, posing a threat to NVIDIA’s market dominance in the AI sector.

Alger Spectra Fund outlined the challenges faced by NVIDIA in its Q1 2025 investor letter, citing concerns about emerging AI models from China and new tariffs targeting industries. Despite these headwinds, NVIDIA reported significant revenue growth driven by its data center segment and emphasized the increasing computational requirements of future AI models.

Overall, NVIDIA ranks 3rd on the list of top stocks to watch ahead of May. While the company shows promise as an investment, there may be greater potential for returns in under-the-radar AI stocks, especially in the current market conditions. Investors are advised to explore alternative AI stocks with promising growth potential for higher returns.



Read more at Yahoo Finance: ‘Everyone Is Confirming Demand is Crazy’