1. NVIDIA Corp. (NASDAQ:NVDA)
Volume: 120.458 million
Average Volume (3-Month): 327.422 million
Number of Hedge Fund Holders: 179
NVIDIA Corp. (NASDAQ:NVDA) is a technology company that designs, manufactures, and sells graphics processing units (GPUs), artificial intelligence (AI) chips, and other computing technologies. Its GPUs are widely used in gaming, professional visualization, and AI applications, and the company has been a pioneer in the field of GPU computing, with a significant role in the development of AI and deep learning.
In FQ2 2025, the company’s revenue was 122.40% from a year-ago period. Data center revenue was up 54% year-on-year, driven by strong demand for NVIDIA Hopper, GPU computing, and networking platforms. Cloud service providers contributed ~45% of data center revenue. Partnerships with healthcare institutions and increasing demand for AI-powered solutions in diagnostics have contributed to this strong financial performance.
At its GPU Technology Conference earlier this year, the CEO estimated annual spending on data center infrastructure at about $250 billion, with a potential total of $1-2 trillion over the next decade. The company won’t dominate the entire market, but analysts estimate its market share between 2025 and 2029 will be over $950 billion.
Elon Musk’s AI startup, xAI, has brought Colossal, an AI training system, online. Powered by 100,000 H100 GPUs from NVIDIA Corp. (NASDAQ:NVDA), Colossal is the most powerful AI training system in the world. Musk plans to double the size of Colossal by shifting to H200 GPUs in the coming months. Blackwell chips, which are even faster and more efficient, could further enhance Colossal’s capabilities.
The company faces pressure to launch new products to maintain investor confidence. Delays in Blackwell chip production and concerns about high GPU prices impact demand. The company’s future success depends on effective AI monetization. By the end of fiscal year 2025, it aims to achieve 100% renewable electricity for its offices and data centers.
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.”
As we acknowledge the growth potential of NVIDIA Corp. (NASDAQ:NVDA), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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