The recent measures taken by the Trump administration to shore up US manufacturing, including tariffs on goods imported from overseas, have dampened optimism around the US economy. The latest tariff hike has hit global stocks, resulting in a downward spiral for major indexes. As a result, companies heavily invested in AI, such as NVIDIA Corporation (NASDAQ:NVDA), are facing significant challenges.
According to reports, hedge funds scaled back their risky bets and sought safety before Trump introduced new tariffs last week. Investment banks like Goldman Sachs and Morgan Stanley have also noted that the net leverage of hedge funds has dropped to around the lowest since late 2023. This suggests a continued risk-off stance among investors, with significant volatility expected in risk assets.
NVIDIA Corporation ranks 5th on our list of best AI stocks to buy according to billionaires. However, some AI stocks hold greater promise for delivering higher returns within a shorter timeframe. For instance, one AI stock has surged since the beginning of 2025, while popular AI stocks have lost around 25%.
Investors should consider the performance of AI companies like NVIDIA in light of these developments. As billionaire investors have repeatedly advocated for investing heavily in AI, the company’s commitment to manufacturing chips and other electronics in the US is seen as a positive move. Nevertheless, the overall market sentiment remains uncertain, making it essential to monitor the situation closely.
Recent data from an internal database on AI companies has identified NVIDIA Corporation as one of the top stocks with the highest number of billionaire investors, with 29 such investors holding $33 billion worth of shares. This suggests that NVIDIA is a popular choice among hedge funds and billionaires alike. However, it’s essential to note that past performance does not guarantee future results, and investors should conduct thorough research before making any investment decisions.
In light of the current market uncertainty, investors may want to consider alternative AI stocks that offer more promise for delivering higher returns within a shorter timeframe. Further analysis of these options is recommended to determine their potential for growth and profitability.
Source: https://finance.yahoo.com/news/nvidia-nvda-spend-billions-us-182941880.html