10 Best Innovative Stocks to Invest in According to Hedge Funds

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 179

NVIDIA Corporation (NASDAQ:NVDA) ranks 4th on our list of the best innovative stocks to invest in according to hedge funds. NVIDIA is a leading GPU maker that is driving innovation in artificial intelligence, gaming, creative design, autonomous vehicles, and robotics.

There is no doubt about NVIDIA’s position in the technology and AI sector. On October 21, the company announced a partnership with Deloitte to deploy digital AI agents for healthcare. On the same day, NVIDIA Corporation (NASDAQ:NVDA) joined hands with Microsoft to support AI startups across the globe with a focus on healthcare and life sciences in the first phase. On October 29, the company revealed Enterprise Reference Architectures. These blueprints will help the company’s partners and customers build AI factories.

NVIDIA Corporation (NASDAQ:NVDA) is scheduled to release earnings towards the end of this month, one of the most awaited events at the moment. On October 26, Toshiya Hari, managing director at Goldman Sachs, appeared in an interview on Yahoo Finance to discuss his thesis on NVDA. According to Hari, the environment is pretty robust supported by broadening customer demand. He shares his bullish stance on the stock and suggests that its ability to innovate across “multiple components” sets it apart from competitors, also contributing to its dominant position. He adds that the stock has more room to run and expects more upside to come. Hari also believes that as hyperscalers announce earnings, NVDA is likely to go even higher.

Ithaka Group’s Ithaka US Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including: data center acceleration, artifi cial intelligence (AI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefi ted from tremendous excitement surrounding the further development of generative AI and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future; Second, Nvidia posted another strong beat[1]and-raise quarter, where the company upped its F2Q25 revenue guidance above Street estimates, showcasing its dominant position in the buildout of today’s accelerated computing infrastructure.”