If artificial intelligence (AI) is the new gold rush, Nvidia (NASDAQ: NVDA) is the preeminent supplier of picks and shovels. The strong demand for Nvidia’s graphics processing units (GPUs) is mind-boggling.
But Nvidia isn’t just helping major corporations build and deploy AI models. It has also invested in several potential rising stars of the AI world. These Nvidia-backed stocks could soar 73% to 89% higher, according to Wall Street.
1. Nano-X Imaging
Nvidia owns only a tiny stake in Nano-X Imaging (NASDAQ: NNOX) worth around $583,000 at the end of the first quarter of 2024. However, Wall Street has great expectations for this small medical technology company.
Only three analysts surveyed by LSEG (OTC: LNST.Y) in June covered Nano-X Imaging. Two of them rated the stock as a “buy” with the third recommending it as a “strong buy.” The average 12-month price target for Nano-X reflects an upside potential of 89%. Even the most pessimistic analyst thinks the stock can move nearly 60% higher.
Nano-X Imaging develops medical imaging technology that’s much more cost-effective than traditional X-ray systems. The company also has a subsidiary, Nanox.AI, that uses AI to diagnose undetected chronic diseases.
2. Recursion Pharmaceuticals
Nvidia owns more than 7.7 million shares of Recursion Pharmaceuticals (NASDAQ: RXRX). At the end of Q1, this position was valued at nearly $77 million. Although Recursion’s shares have declined significantly since then, analysts think the stock will rebound.
The average 12-month price target for Recursions Pharmaceuticals is 73% above the current share price. The lowest price target reflects a 21% upside potential. Interestingly, though, only two of the six analysts surveyed by LSEG in June rate Recursion as a “buy.” The others have a “hold” rating on the stock.
Recursion refers to itself as a “TechBio” company rather than a biotech company to underscore its focus on using technology for drug discovery and development. Its BioHive-2 supercomputer uses 63 Nvidia DGX H100 GPUs and 504 Nvidia H100 Tensor Core GPUs. BioHive-2 uses AI models to…
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