Foxconn, Nvidia (NVDA) Announce AI Data Center Project at Computex

We recently published a list of 12 AI Stocks Making Waves on Wall Street Today. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks that are making waves on Wall Street today.

The United States recently issued guidance threatening companies not to use advanced computer chips from China, including Huawei’s Ascend AI chips. However, China has now urged the country to “immediately correct its wrongdoings” and stop “discriminatory” measures against it.

A spokesperson for China’s Ministry of Commerce has said that the United States has abused its export control measures. He said that the country has imposed stricter restrictions on Chinese chip products based on unfounded allegations, further explaining how the said restrictions contain discriminatory measures and tend to distort the market.

The U.S. Commerce Department had issued the guidance last week, with its Bureau of Industry and Security stating that “these chips were likely developed or produced in violation of U.S. export controls.”

“The U.S. has been abusing export control measures, imposing stricter restrictions on Chinese chip products under unfounded accusations… China firmly opposes this… Trying to trip others won’t make oneself run faster.”

-The Chinese Ministry

Opposing the unilateral bullying from the US’s end, the Chinese spokesperson said that the restrictions have infringed upon the legitimate rights and interests of Chinese companies. The country has been accused of undermining the preliminary trade agreement reached in Geneva, Switzerland.

The spokesperson further urged the country to work with China to jointly safeguard the consensus concluded in the Geneva talks.

“If the United States continues to cause China substantive harm, China will take resolute measures to safeguard its legitimate rights and interests.”

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 20, Taiwan’s Foxconn, the world’s largest contract electronics maker, announced its plans to build an artificial intelligence center with Nvidia. Per a Reuters report, Foxconn said that the center will be built in phases and is targeted to have 100 megawatts of power.

Speaking at Taipei’s annual Computex trade show day after Nvidia’s announcement that it will build a giant AI supercomputer in Taiwan in partnership with Foxconn, Foxconn Chairman Young Liu said that the AI data center will require massive power and will be built in phases. Depending on power availability, some of it will be planned in the southwestern city of Kaohsiung, and others in other cities across Taiwan.

“This AI data centre is targeted to have 100 megawatts of power. We know that power is a very critical resource in Taiwan. I don’t want to use the word ‘shortage’. So it will take a few steps to reach 100 megawatts. We’ll start with 20 megawatts … then add another 40.”

Overall, NVDA ranks 4th on our list of AI stocks that are making waves on Wall Street today. 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.

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.