We recently compiled a list of the 10 Hottest Large-Cap Stocks Right Now. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other large-cap stocks.
This article will analyze several prominent large-cap stocks that are currently exerting significant influence on market dynamics. These stocks are currently considered “hot” because their stock prices are relatively more volatile, and they draw the attention of a large pool of investors. These stocks are the most talked about, with high trading volumes, large price actions and overall hot atmosphere surrounding them currently.
What to watch when it comes to Large-Cap Stocks?
Large-Cap Stocks are usually household names, stocks which even the non-investing population has heard of. They are considered safer investments than small-cap stocks, so they will naturally bring a larger volume when it comes to trading.
Price change over the past week is the first parameter we will analyze when talking about the hottest Large-Cap Stocks. Another parameter which we will analyze is the volume of shares traded over the course of the past trading week. Even with Large-Caps, when investors and traders see large changes in volume, they could get spooked or could see an opportunity to jump in and aboard the train.
The first days of the new year, as well as the last days of the year gone, are usually very volatile. There are a lot of speculation and tax-loss harvesting going on, which affects the broader market dynamics. On the other hand, investors who took profit in 2024 are looking for new investments to start their new investment year strong. The New Year’s Day holiday also affects the trading continuity, further deepening the volatility. To see which firms kicked this year off in the red, you can check out the following article.
The Large-Caps listed here are all market titans, with market caps over $200 billion dollars.
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NVIDIA Corporation (NASDAQ:NVDA)
Return: 4.27%
NVIDIA Corporation (NASDAQ:NVDA) had a great week in the market. It was the strongest stock of the “Magnificent 7”, closing 4.27% in green.
Since the AI sector doesn’t show signs of stopping in 2025, investors are positioning their portfolios hoping that NVDA can have another great year as it did last year, when it returned 171%. The demand is still strong, pushing market leaders such as NVDA to new heights.
NVDA is still years ahead of its competition when it comes to the products and services it provides, so this competitive advantage could still fuel further growth in 2025. Analysts are expecting further earnings-per-share growth rates over the course of this year, so NVDA, even after a nearly 200% surge in 2024, is still considered “hot” and the leader of the Magnificent 7.
Overall NVDA ranks 1st on our list of the hottest large-cap stocks. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.