10 Best Revenue Growth Stocks to Buy According to Hedge Funds

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1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 193

5-Year Revenue Growth: 62.43%

NVIDIA Corporation (NASDAQ:NVDA) specializes in products and platforms for the gaming, professional visualization, data center, and automotive markets. The chip maker is a pioneer of GPU-accelerated computing and is well known for its GPU technology. As of 2024’s third quarter, the firm had 90% of the global GPU market share.

Based on the rising interest in AI and a strong demand for its AI-centric chips across various industries, NVIDIA ended up being the largest global gainer in market capitalization for 2024. Among the most valuable global stocks, the chip maker witnessed its market value increasing by more than $2 trillion last year and hitting $3.28 trillion at the close of 2024. Amid the booming demand for AI chips, NVDA beat Wall Street’s expectations in its recent quarter.

Recently, a risk started hovering over NVDA’s sales of GPUs for data centers which account for a major portion of its revenue. The company’s shares fell nearly 2% as the Biden administration released stricter rules on AI chip exports, capping the number of AI chips called GPUs that can be ordered by most countries without a special license. Nvidia vice president of government affairs Ned Finkle referred to the rule as being “drafted in secret and without proper legislative review”. Previously, Bank of America analyst Vivek Arya reiterated his Buy rating on NVDA shares while mentioning the stricter rule muddying the water for the company.

While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and 30 Most Important AI Stocks According to BlackRock.

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