Raymond James Reiterates Strong Buy on NVIDIA (NVDA), Targets $150

We recently published a list of 11 AI Stocks On Wall Street’s Radar. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks on Wall Street’s radar.

US President Donald Trump is all set to revive the country’s struggling coal industry. Last month, he signed a series of executive orders so that the government could meet the surging energy demand of AI data centers. Executive Order 14241 will allow several older coal-fired plants about to retire to continue generating power for the foreseeable future. This will be done to meet the growing demand for artificial intelligence.

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Repeatedly promoting coal as a power source for data centers, Trump told the World Economic Forum in January that he would be approving power plants for AI through an emergency declaration. He also called on tech companies to use coal as a backup power source.

“They can fuel it with anything they want, and they may have coal as a backup — good, clean coal.”

However, with the tech industry investing billions of dollars to expand renewable energy and leveraging nuclear power as a way to meet its growing electricity demand, the use of coal is actually against the tech companies’ environmental goals.

Nevertheless, the tech industry does acknowledge that fossil fuel generation will eventually be needed to help navigate the electricity demand from AI. However, these companies are focusing on natural gas as it emits less half the CO2 of coal per kilowatt hour of power.

“To have the energy we need for the grid, it’s going to take an all of the above approach for a period of time. We’re not surprised by the fact that we’re going to need to add some thermal generation to meet the needs in the short term.”

-Kevin Miller, Amazon’s vice president of global data centers.

Other companies, such as Anthropic, have stated that there are a broader set of options available than just coal. “

We would certainly consider it but I don’t know if I’d say it’s at the top of our list.”

-Anthropic co-founder Jack Clark

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.

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

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. On May 19, Raymond James analyst Srini Pajjuri reiterated a “Strong Buy” rating on the stock with a $150.00 price target. Pajjuri noted that despite the company’s upside in the current quarter, the July 2025 quarter consensus estimates might not fully account for the impact of the recent H20 export restriction.

Strong Blackwell product ramps will allow the company to maintain its trend of revenue increase by $4-5 billion per quarter, as seen sequentially over the last six quarters. However, the H20 restriction is expected to create an estimated $4 billion headwind, potentially limiting sequential growth in the second quarter. Analysts still expect robust hyperscale capital expenditure trends and recent AI diffusion rules changes to allow NVIDIA’s management to be optimistic about the second half of the year.

Overall, NVDA ranks 4th on our list of AI stocks on Wall Street’s radar. 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 have limited downside risk.  If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.