Morningstar Ranks Nvidia and Microsoft as Top AI Stocks
Morningstar analysts have identified Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT) as the two best artificial intelligence stocks to purchase as of October 2023. Nvidia, with a median target price of $250 per share, represents a potential upside of 31% from its current price of $190. Meanwhile, Microsoft’s median target price of $631 implies a 29% upside from its current price of $488.
Nvidia dominates the data center GPU market with over 90% market share, and its sales in this segment are expected to grow by 36% annually through 2033. Microsoft has integrated generative AI into its software products, resulting in substantial user growth, with monthly active users surpassing 150 million in September 2023. The company’s 27% equity stake in OpenAI is driving its leadership in AI development.
