We recently compiled a list of 15 AI Stocks Making Waves on Wall Street. In this article, we’ll take a look at where NVIDIA Corporation (NASDAQ:NVDA) stacks up to other AI stocks making waves on Wall Street.

Data centers are at the heart of the AI ​​revolution sweeping markets around the world. However, the massive investments in these data centers have raised concerns about their impact on the environment. Growing demand for electricity from data centers, fueled by advances in AI and cloud computing, is likely to lead to a short-term increase in fuel dependency, according to a Reuters news agency report. fossils. Utility companies in the United States, Europe and Asia are turning to natural gas and even coal to meet growing electricity needs due to the slow expansion of renewable energy, according to the agency. press. An example of this can be seen in Northern Virginia, home to the largest concentration of data centers in the world.

Learn more about these developments by accessing 10 Best AI Data Center Stocks And 10 Hot AI Stocks According to Goldman Sachs.

The news agency says that globally, the scenario is equally difficult. Countries like Poland and Germany are partly dependent on coal due to insufficient renewable capacity, with Poland’s energy mix still dominated by more than 60% coal in 2023. In Ireland, where data centers now consume more than 20% of the electricity, the operators postponed the construction of the plant. pensions and relied on natural gas for grid stability. In Malaysia, less than 50% of the green energy auctioned is used, with companies opting for cheaper fossil fuels. While hyperscalers have committed to using renewable energy, critics argue that these commitments often involve diverting clean energy already available to others, without thereby bringing in additional renewable capacity. McKinsey predicts that most of Europe’s data center energy by 2030 will come from low-carbon sources, but this could include natural gas.

Learn more about these developments by accessing 30 The Most Important AI Stocks According to BlackRock And Beyond Tech Giants: 35 Non-Tech AI Opportunities.

For this article, we selected AI stocks by combing through news articles, stock analyzes and press releases. These stocks are also popular among hedge funds.

Why are we interested in stocks that hedge funds are piling into? The reason is simple: our research has shown that we can outperform the market by imitating the stocks selected by the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

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Number of hedge fund holders: 193

NVIDIA Corporation (NASDAQ: NVDA) provides graphics, computing and networking solutions. On November 21, Mizuho raised the stock’s price target from $165 to $175 and maintained an outperform rating on the stock after the company reported a strong end-October sales result of 35.1 billion dollars and guided its end-January revenue to $37.5 billion. advisory ratings were in line with consensus at $37 billion, but below buy-side estimates of more than $39 billion. The advisory, which states that Nvidia remains a top pick in Mizuho 2024 and is a leader in the AI ​​accelerator market, recommends investors to buy the pullout.

Global NVDA ranks 4th on our list of AI stocks making waves on Wall Street. While we recognize the potential of NVDA as an investment, our belief lies in the belief that certain AI stocks hold more promise in terms of higher returns in a shorter time frame. If you’re looking for an AI stock that’s more promising than NVDA but is trading at less than 5x earnings, check out our report on cheapest AI stock.

READ NEXT: 8 Best Wide Fluke Stocks to Buy Now And 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published on Insider Monkey.