3. NVIDIA Corp. (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corp. (NASDAQ:NVDA) is a leading designer and manufacturer of graphics processing units (GPUs). These chips are essential for rendering graphics, but now they’re also used in artificial intelligence, machine learning, and data centers.
In FQ2 2025, the company recorded a rather higher year-over-year improvement of 122.40% in revenue. The revenue generated in this period was $30.04 billion, beating analyst estimates by $1.29 billion. Data center revenue was up 54% year-on-year, driven by strong demand for NVIDIA Hopper, GPU computing, and our networking platforms. Cloud service providers represented roughly 45% of data center revenue.
Despite such growth, the company’s shares fell following this report. This is because investors had concerns about Blackwell chip production and slowing data center growth. Still, its shares were held by 179 hedge funds. Fisher Asset Management is the biggest shareholder with shares worth $11.54 billion, as of June 30. Later in late August, management approved a buyback of $50 billion in equity shares.
NVIDIA Corp. (NASDAQ:NVDA) faces pressure to launch new products to maintain investor confidence. Factors like delays in Blackwell chip production and concerns about high GPU prices are what impact the demand. While CUDA software is a competitive advantage, the company’s future success depends on continued innovation and effective AI monetization. Market experts are also forecasting a shift to robotics for the company’s growth. Management expects AI revenue to reach low-double-digit billions this year.
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.”
