7. NVIDIA Corp. (NASDAQ:NVDA)
Average Upside Potential: 21.48%
Market Cap as of September 26: $3026.02 billion
Number of Hedge Fund Holders: 179
NVIDIA Corp. (NASDAQ:NVDA) is a multinational corporation and technology company that specializes in designing and manufacturing graphics processing units (GPUs). These GPUs are used in a wide range of applications, including gaming, professional visualization, artificial intelligence, and data centers.
Revenue in FQ2 2025 grew 122.4% year-over-year, driven by a 54% increase in data center revenue, where cloud service providers accounted for ~45% of data center revenue. Strong demand for NVIDIA Hopper, GPU computing, and networking platforms fueled this growth. For FQ3, the company expects total revenue to be $32.5 billion
Elon Musk’s xAI startup has launched Colossal, the world’s most powerful AI training system. It’s Powered by NVIDIA Corp.’s (NASDAQ:NVDA) H100 GPUs, with an upcoming shift to H200 GPUs. and eventually Blackwell chips.
It also has expansions in healthcare. Its Clara platform, an AI-powered suite of tools, is empowering healthcare providers and researchers to process vast datasets quickly and accurately for applications like diagnostics, drug discovery, and data analysis.
Just a few days back, NetApp launched a new GenAI data vision and end-to-end integrated solution powered by NVIDIA AI. Management estimated annual spending on data center infrastructure at $250 billion, with potential growth to $1-2 trillion over the next decade.
The demand for computing power to train large AI models is growing rapidly. By 2027, 3 frontier models with 50 trillion parameters each could require 20 million chips for training. Companies like NVIDIA Corp.’s (NASDAQ:NVDA) are leading in training and inference. Inference will be crucial for monetizing AI models. Such factors show how the company is poised to maintain its position in the industry.
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.”
