10 Best Self-Driving Technology Stocks To Buy According to Hedge Funds

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Investors In Q3 2024: 193

NVIDIA Corporation (NASDAQ:NVDA) is the world leader in designing AI GPUs – a fact that has propelled its shares by more than 700% since OpenAI publicly released ChatGPT. The firm also has a presence in the autonomous driving market since the underlying design technologies of its GPUs can also be used to compute autonomy workloads. NVIDIA Corporation (NASDAQ:NVDA) operates in the autonomous market through its NVIDIA Drive platform. This platform enables businesses to compute workloads through the Orin SoC, use NVIDIA Corporation (NASDAQ:NVDA)’s DRIVE AGX software, and rely on a cloud infrastructure for broader computing. As a whole though, the firm’s hypothesis is dependent on the demand for accelerating computing hardware for enterprise computing workloads. NVIDIA Corporation (NASDAQ:NVDA) leads the market through its product design, but supply constraints and a cooling down in AI interest or profitability pushed out in the future could create troubles for the firm.

Polen Capital mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter. Here is what the fund said:

“In a reversal from the past two quarters, NVIDIA Corporation (NASDAQ:NVDA) represented our top relative contributor this quarter, despite the modest underperformance, declining -1.7%. In many ways, NVIDIA was a microcosm of the broader market’s heightened volatility. Beneath the placid surface, the company experienced a 27% drawdown followed by a +31% rally, only to repeat the cycle with a -21% drawdown followed by a subsequent 20% rally to finish the quarter. In our view, the stock’s volatility goes beyond fundamental business drivers, but the company in turn benefitted from increasing capital spending budgets from cloud service providers and large enterprises for generative AI (“GenAI”) infrastructure spending. Simultaneously, the stock endured weakness related to the delayed next-generation Blackwell chip, and an earnings forecast that exceeded expectations, albeit not as much as some investors hoped. While we continue to believe NVIDIA is a highly advantaged business, with significant demand for their chips and servers ahead of the need for that hardware from real-world businesses, we are cautious about its growth sustainability since it lacks recurring revenue.”