4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 186
NVIDIA Corporation (NASDAQ:NVDA) is a leading technology company that specializes in graphic processing units and computing solutions for an array of industries including gaming, data canters, autonomous automotive, professional visualization, and much more. NVIDIA Corporation’s (NASDAQ:NVDA), NVIDIA Drive Platform provides end-to-end solutions to support the development of autonomous driving technology.
The company posted a successful first quarter of 2025, with revenue growing 262% year-over-year to $26 billion backed by exceptional performance in its Data Center and Gaming segments. The Data Center revenue was up 427% year-over-year to reach $22.6 billion during the quarter, driven by the NVIDIA Hopper GPU used for training LLMs, recommendation engines, and generative AI. Management believes the automotive sector to be one of the key vertices within its Data Center segment and expects Auto to be the largest vertical driving multi-billion revenue opportunity during the year.
The automotive revenue of the company grew 11% year-over-year to reach $329 million and was primarily driven by the self-driving platforms. NVIDIA Corporation (NASDAQ:NVDA) has experienced a ramp-up in its AI cockpit solutions and global OEM customers translating to its subsequent growth in revenue.
The competitive edge of the company lies in its huge market capitalization and its ability to collaborate with leading automakers to deliver autonomous driving solutions. Some of the notable achievements for the company during the quarter include the successful launch of Xiaomi’s first electric vehicle built on NVIDIA Orin. Moreover, the company has also announced new design wins for its NVIDIA Drive Thor quoting significant partnerships with BYD, XPENG, Nuro, and GAC’s AION Hyper.
NVIDIA Corporation (NASDAQ:NVDA) is one of the best autonomous vehicle stocks because it was held by 186 hedge funds in Q1 2024, with total stakes worth $48.30 million. Renaissance Technologies is the top shareholder of the company with a position worth $867.5 million, as of August 11. 61 analysts have a Strong Buy rating on the stock, with their median price target of $140 presenting an upside of 34% from current levels.
Patient Capital Opportunity Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
NVIDIA Corporation (NASDAQ:NVDA) continued to lead both the market and the portfolio, remaining a top performer in the period gaining 36.7%. Nvidia is the market leader in designing and selling Graphics Processing Units (GPU), which has recently benefited from the insatiable demand of artificial intelligence (AI) models. The company currently captures 92% market share of data center GPUs and grew revenue, earnings and free cash flow (“FCF”) an astounding 126%, 392%, and 610%, respectively, over the last year. While we expect competition to increase, we think NVDA can continue to maintain top market share. While many are concerned with backlog times shortening, we think the rollout of the B100, which promises 2.5x better performance for only 25% more cost, later this year will create more shortages. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of artificial intelligence (AI).
