10 Best American Stocks To Buy For Foreign Investors

6. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 179

NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company well-known to anyone interested in the AI market. Many investors like this stock because, at present, returns are becoming increasingly concentrated in a handful of tech names, and NVIDIA Corporation (NASDAQ:NVDA) is one of them, making it a stock you just can’t miss out on.

NVIDIA Corporation (NASDAQ:NVDA) is known to be a company experiencing rapid growth. In the second quarter alone, the company grew its quarterly revenues to $26 billion, representing a growth of 262% year-over-year. The main catalyst for this growth is the increasing demand for graphics processing units, which NVIDIA Corporation (NASDAQ:NVDA) supplies. The company is currently nearing a new product cycle, with Blackwell going into production in the third quarter, which only bears testament to this demand’s existence. We thus consider NVIDIA Corporation (NASDAQ:NVDA) to be among the top American stocks to buy now for any investor, because demand for its products only seems to be going up, resulting in growth continuing.

In the second quarter, 179 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA), with a total stake value of $53.7 billion.

Aoris Investment Management mentioned NVIDIA Corporation (NASDAQ:NVDA) in its second-quarter 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.”