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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 discover new drugs. It's the world's fastest supercomputer wholly owned and operated by a biopharmaceutical company.

3. Soundhound AI

Nvidia owns over 1.7 million shares of Soundhound AI (NASDAQ: SOUN). This stake was worth nearly $10.2 million at the end of Q1. Soundhound has been a big winner so far in 2024 with its share price almost doubling.

Wall Street believes this momentum can continue. The average 12-month price target for Soundhound AI reflects an upside potential of roughly 79%. Four of the six analysts surveyed by LSEG in June rate the stock as a "buy" or a "strong buy" with the other two rating it as a "hold."

Soundhound AI is the most pure-play AI company of these three Nvidia investments. It's a leader in developing voice AI systems used by carmakers, restaurants, smart TV makers, and other businesses.

Is Wall Street right about these stocks?

Wall Street analysts could be spot on with their projections for Nano-X Imaging, Recursion Pharmaceuticals, and Soundhound AI. On the other hand, they could be dead wrong. No one knows for sure how any stock will perform over the next 12 months. However, I agree with the general optimism about two of these Nvidia-backed stocks.

Recursion Pharmaceuticals has a couple of big partners, Roche and Bayer. The company plans to report results from seven clinical studies over the next 18 months, including five phase 2 trials.

Soundhound AI's revenue continues to grow rapidly, soaring 73% year over year in Q1. The voice AI innovator targets a total addressable market of over $140 billion. Soundhound's customer base already includes a virtual "who's who" in the automotive and restaurant industries.

I'm not as upbeat about Nano-X. Despite the promise of its technology, the company's revenue is shrinking instead of climbing.

Risk-averse investors probably won't find any of these stocks appealing. None of them are profitable at this point. However, I think aggressive investors could especially like Recursion and Soundhound AI -- just as Nvidia apparently does.

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.