Daiwa Sticks to Buy Rating on Nvidia (NVDA): Bullish on AI Despite Lowered Targets

We have recently released a list of 10 Artificial Intelligence Stocks to Keep an Eye On Currently In this piece, we will examine how NVIDIA Corporation (NASDAQ:NVDA) measures up against other notable artificial intelligence stocks worth considering right now.

The economic conflict between the globe's largest trading nations, China and the U.S., is escalating more intensely. As a countermeasure, China has introduced an 84% duty on American goods imported into their country beginning April 10th. This action follows President Trump’s imposition of tariffs on Beijing, with these charges recently raised significantly to as high as 145%.

Technology shares have been declining as a result. For example, Apple primarily conducts its production processes in China, and the ongoing trade conflict may lead to an increase in iPhone prices. Despite President Trump’s belief that this major corporation could manufacture its devices domestically, specialists remain skeptical.

READ NOW: 10 Artificial Intelligence Stocks That Investors Are Tracking Today and 9 Popular AI Stocks Grabbing Attention Today

As per Needham’s analyst Laura Martin, relocating iPhone production back to the U.S. could span several years and lead to a significant increase iniPhone prices. Likewise,Wedbush’sDanIveshasindicatedthatanAmericamadeiPhonemightcostasmuchasa$3,500.

Despite this, President Donald Trump has recently declared a 90-day suspension of the "reciprocal tariffs" imposed by his administration. These tariffs were set to impact manufacturing sites located in Vietnam, India, and Thailand for the company.

Despite the turmoil surrounding us, artificial intelligence keeps advancing rapidly. Recently, a Silicon Valley-based company named Lightmatter announced they have created a novel kind of computer chip. This innovative component not only accelerates AI tasks but also consumes less power during operation.

The firm stands out as one of the select few aiming to utilize light beams for transferring information between computers rather than relying on electrical impulses. Nonetheless, the company posits that these same light beams could be employed to perform computations directly.

What we're focused on is exploring the potential directions for processors. Our main interest lies in the realm of computing, and this represents an alternate pathway. The underlying belief driving us is that there's trillions of dollars in economic value tied to the notion that computer performance will continually improve.

— Nick Harris, the CEO of Lightmatter

Additionally, President Donald Trump informed his Cabinet members that billionaire Elon Musk plans to step down from his administrative position within the next few months. Following his attempts to reduce the size of the federal workforce, Musk has faced significant backlash. This political engagement has also had adverse effects on his business operations.

I believe he has done an outstanding job, however, managing such a large corporation must take significant time and effort… Eventually, though, he will likely return to his previous commitments. It’s something he desires himself. As long as possible, I would want to retain his services.

-President Donald Trump.

To compile the list for this article, we reviewed news articles, conducted stock analyses, and examined press releases to identify AI stocks. Additionally, these stocks have gained significant attention from hedge funds. It’s worth noting that the hedge fund information used was current up until the fourth quarter of 2024.

Why do we focus on the stocks that hedge funds amass? It's straightforward: our studies indicate that mimicking the leading stock choices from premier hedge funds allows us to surpass the market performance. Each quarter, our quarterly newsletter recommends 14 small-cap and large-cap stocks, delivering a return of 373.4% since May 2014, which significantly exceeds its benchmark by 218 percentage points. see more details here ).

A detailed view of a vibrant top-of-the-line graphics card being inserted into a gaming PC.

NVIDIA Corporation (NASDAQ: NVDA )

Number of Hedge Fund holders: 223

NVIDIA Corporation (NASDAQ: NVDA), which focuses on AI-powered technologies, provides various platforms including those designed for data centers, autonomous vehicles, robotics, and cloud computing. On April 9, Daiwa maintained their "Buy" rating for the company but adjusted its price target downwards by 28%, setting it at $115 per share instead of the previous $160.

Regarding Nvidia, we recommend adopting our Moderate stance and purchasing during pullbacks.

Overall, NVDA ranks 5th Among the AI stocks worth monitoring, we recognize NVIDIA’s appeal as an investment; however, we're convinced that certain AI stocks offer superior prospects for generating substantial gains over a brief period. One such AI stock has surged since early 2025 even though many well-known AI equities have declined by approximately 25%. Should you seek an alternative to NVDA with stronger growth potential and trading below five times its earnings, explore our detailed analysis available in our latest report. cheapest AI stock .

READ NEXT: 20 Top AI Stocks You Should Consider Purchasing Today and 30 Top Stocks to Purchase Currently as Recommended by Millionaires .

Disclosure: No conflicts of interest. This article was initially published here. Insider Monkey .

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