Is NVIDIA Corporation (NVDA) the Best Dow Stock?

We recently published a list of The Best and Worst Dow Stocks. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other Dow stocks.

The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well.

It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends.

We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year.

Methodology

In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest.

We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 223

Short Interest as of Apr 30, 2025: 1.12%

NVIDIA Corporation (NASDAQ:NVDA) is a technology company that develops graphic processing units (GPUs) and also provides networking and computing solutions. It operates through two main segments: the computing & networking segment and the graphics segment.

The company recently received a sell rating from an investment bank and research firm, Seaport Research Partners, as it started coverage on the stock. The firm also assigned a price target of $100 to the semiconductor company. Goldberg noted that Nvidia’s increasingly complex systems present supply chain challenges.

However, Morgan Stanley increased its estimates for NVIDIA Corporation's (NASDAQ:NVDA) 2026 revenue, citing strong demand for artificial intelligence chips. Analyst Joseph Moore thinks that macro and supply chain risks are not as significant as they appear.

There is also a lot happening on the political front. In order to discuss concerns about Huawei’s growing artificial intelligence technologies, Nvidia’s CEO, Jensen Huang, had a meeting with U.S. lawmakers last month. The meeting discussed how US restrictions on Nvidia’s chips in China and Huawei’s AI chips could strengthen Huawei.

Overall, NVDA ranks 4th on our list of best and worst Dow stocks. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this 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 is originally published at Insider Monkey.