Core Viewpoint - Nvidia has significantly benefited from the AI hype cycle, generating billions through hardware design, but faces challenges from Chinese competition and international trade disputes [1] Financial Performance - Nvidia's shares are down approximately 10% from an all-time high of $149 in January, with the upcoming first-quarter earnings report on May 28 expected to provide insights into future performance [2] - In the fiscal fourth quarter, Nvidia's revenue increased by 78% year over year to $39.3 billion, driven by demand for Blackwell GPUs [3] - Fourth-quarter profits rose 73% to $22.1 billion, showcasing the company's ability to maintain high margins [4] - Management projects first-quarter revenue of $43 billion (±2%), surpassing analyst expectations of $41.8 billion and representing a 62% increase from the previous year [5] Challenges and Risks - Long-term challenges include the impact of the Trump administration's "reciprocal tariff" policy and competition in China, which may not have been fully accounted for in the company's guidance [6] - The ban on sales of H20 chips to China could result in a potential loss of up to $15 billion in sales, with an expected $5.5 billion impairment charge in the first quarter [8] - Despite these challenges, Nvidia remains committed to the Chinese market, viewing it as a $50 billion annual opportunity, and plans to release a downgraded version of its H20 in China [9][10] Market Position and Valuation - Nvidia's forward price-to-earnings multiple is 31, slightly above the S&P 500 average of 24, which is considered relatively affordable given the company's growth rate and the ongoing excitement in the AI sector [11]

Core Viewpoint - The article highlights four artificial intelligence (AI) stocks that investors may consider buying, emphasizing their strong market opportunities and innovative approaches in the tech industry. Group 1: Palantir Technologies - Palantir Technologies focuses on the applications and workflow layers of AI, differentiating itself by structuring data into an "ontology" to link it to real-world objects and processes [2] - The company's solutions are utilized across various industries, including mission-critical tasks for the U.S. government, positioning it as a long-term winner that can replace outdated systems [3] - A recent deal with NATO further enhances Palantir's growth prospects, indicating a robust long-term opportunity [4] Group 2: Nvidia - Nvidia is set to ship billions of dollars worth of its new Blackwell GPUs to Saudi Arabia, alleviating concerns about slowing AI infrastructure expansion [6] - The company holds over 80% market share in the GPU market, driven by its CUDA software program, which simplifies chip programming and includes AI libraries [8] - Continued strong spending on AI infrastructure will benefit Nvidia significantly [9] Group 3: Salesforce - Salesforce aims to lead in agentic AI through its Agentforce platform, integrating AI agents that automate tasks with minimal human interaction [10] - The platform features pre-built AI agents for various business functions and a marketplace with over 200 partners, expanding its use cases [11] - The consumption-based product, priced at $2 per conversation, has gained traction with over 3,000 paid deals since its launch, indicating a large growth opportunity [12] Group 4: Pinterest - Pinterest is leveraging AI to enhance user engagement and monetization, successfully transforming its platform [13] - The company developed a multimodal AI model for better user intent interpretation and personalized recommendations, including visual search capabilities [14] - With the introduction of its Performance+ solution, Pinterest aims to improve advertiser campaign performance, indicating strong long-term investment potential [15]

Group 1: Nvidia - Nvidia reported a 78% increase in revenue to $39.3 billion in the fourth quarter, driven by strong data center sales, with non-GAAP net income rising 71% to $0.89 per diluted share [3] - Despite strong financial results, Nvidia's stock has declined approximately 10% since the report, partly due to a 3-percentage point contraction in gross margin, indicating a potential loss of pricing power [4] - Nvidia's GPUs are recognized as leading AI accelerators, supported by its CUDA platform, which includes extensive software development tools and pretrained AI models, making competition challenging [5] - Wall Street anticipates a 50% increase in Nvidia's adjusted earnings for fiscal 2026, suggesting the current valuation of 40 times adjusted earnings is relatively low [6] Group 2: iShares Bitcoin Trust - The iShares Bitcoin Trust has seen Bitcoin prices rise 35% over the past year to $84,000, with experts predicting significant future price appreciation due to factors like the adoption of spot Bitcoin ETFs and periodic halving of mining subsidies [7][11] - The iShares Bitcoin ETF achieved the highest net inflows during its first year on the market, indicating strong investor interest [10] - Notable hedge fund managers have shifted their portfolios by selling Nvidia shares and increasing their positions in the iShares Bitcoin Trust, with significant purchases made by Israel Englander, Ken Griffin, and David Shaw [8] - Predictions for Bitcoin's future price vary widely, with estimates ranging from $1 million by 2033 to $13 million by 2045, indicating potential upside of 1,090% to 15,375% from current levels [9]