6. NVIDIA Corporation (NASDAQ:NVDA)
Short Interest as % of Shares Outstanding: 1.12%
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) is an American tech company known for designing graphics processing units (GPUs) and software used in everything from gaming to AI. The company excels in high-performance computing and AI technologies.
Its Graphics segment offers GeForce GPUs for gaming, GeForce NOW for game streaming, and Quadro/NVIDIA RTX GPUs for enterprise workstations, along with Omniverse software for metaverse development. The Compute and Networking segment includes data center computing platforms, networking systems, Jetson robotics, embedded platforms, and NVIDIA AI Enterprise solutions.
NVIDIA’s (NASDAQ:NVDA) Aerial platform is advancing 5G and future 6G technology with a range of tools designed for both commercial and research use. The Aerial CUDA-Accelerated RAN helps build software-defined, cloud-native 5G and 6G networks using GPU-accelerated libraries for important network functions. This framework is flexible and can be extended with AI components to enhance performance.
The Aerial Omniverse Digital Twin allows for detailed simulations of 6G networks, from individual towers to entire cities. It includes realistic models and simulators to help researchers improve network algorithms and transmission efficiency.
The company’s Aerial platform also supports the development of virtualized 5G networks, which run on the company’s computing hardware to boost performance. Aerial allows data centers to run both 5G and AI applications at the same time, which makes them more efficient and adaptable. For researchers, it offers the 6G Research Cloud Platform and provides access to these tools through the cloud to support advanced 6G research and development.
NVIDIA’s (NASDAQ:NVDA) shares were held by 179 hedge funds in the second quarter, at a combined stake value of $53.67 billion. Fisher Asset Management is the company’s biggest shareholder with 93.4 million shares worth $11.54 billion, as of June 30. It is our 6th best 5G stock to buy according to short sellers.
Aoris International Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“If Information Technology was the dominant sector for the quarter, NVIDIA Corporation (NASDAQ:NVDA), which is the largest supplier of microprocessors used for generative AI applications, was the dominant company. NVIDIA’s share price rose by a third in the quarter and has increased by 255% so far this year. Since the beginning of 2023, its market value has risen by 8.3x, or $4.3 trillion, making NVIDIA the third largest company in the world by this measure.
As a result of the unusually strong stock price performance from NVIDIA and a few other large companies, equity markets have become increasingly concentrated. You can see this in the chart below, which shows that on 30 June, 27% of the market value of the 500 largest US companies was attributable to just five companies, more than twice the average of the last 20 years.
The composition of the Aoris International Fund will always be very different to that of the broader equity market. There will be periods, such as the most recent quarter, where this contributes to our performance lagging that of our benchmark. When it comes to NVIDIA and other AI-centric companies, rapid growth is exciting, but it makes it difficult for us to judge what is normal. Our preference is to own established leading companies where we can make a more confident, evidence-based judgement about their growth and profitability.”
