1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) is a leading developer of GPUs, traditionally used to enhance computing experiences, particularly in PC gaming. Over time, GPUs have become critical for artificial intelligence applications, with NVDA providing both AI-focused GPUs and its CUDA software platform for AI model development and training. The company is also expanding its data center networking solutions, enabling GPUs to work together efficiently to handle complex workloads.
NVDA clearly had an explosive FY2024 as the stock price returned 146% in the last twelve months alone. While bears argue that the upside from accelerating GPU demand for data center applications has largely been realized and is priced in, NVIDIA Corporation (NASDAQ:NVDA) continues to tap into new markets, thus perpetually expanding its TAM and fueling growth. The company is partnering with IQVIA to develop custom AI models and agentic platforms for clinical trials using its proprietary AI foundry services and DGX Cloud capacity. It also introduced GenMol, a new foundation model for goal-directed molecular generation, as part of its BioNeMo platform for AI-driven drug discovery. Furthermore, NVDA is collaborating with the Arc Institute to develop large-scale foundation models for biology using NVIDIA DGX Cloud infrastructure and BioNeMo. A partnership with Illumina was announced to combine Illumina’s sequencing platforms with NVIDIA’s Clara toolset to expand genomics accessibility and utility. Another partnership with Mayo Clinic is set to accelerate AI-driven digital pathology using NVIDIA DGX Blackwell and applying Cosmos for multimodal vision to understand biology more deeply. The company is advancing physical AI capabilities through its Holoscan healthcare AI robot platform, Cosmos Nemotron vision language models, and Omniverse for creating physics-aware virtual worlds to train robots.
Management of NVIDIA Corporation (NASDAQ:NVDA) has thoroughly discussed its new healthcare opportunity during the 43rd Annual J.P. Morgan Healthcare Conference. Here is what they said:
“Now if you think about the $10 trillion industry that health care has become, a very large portion of that is in labs, hospitals, and operations. And we’re still in a huge labor shortage, 10 million to 15 million to 20 million labor shortage. AI can help. AI is going to help through the delivery of AI agents who can be knowledge workers working on your behalf. They can be in the form of delivery robots, offloading nurses from delivering sheets to a different room. They’re going to become all forms. And this digital intelligence is going to be built on AI factories, just as I described. Data comes in, models get built and refined, assembled into agents, and intelligence comes out.”
NVDA is a semiconductor equipment stock that hedge funds are buying. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an 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.
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