10 Best S&P 500 Stocks to Buy According to Hedge Funds

4) NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 179

NVIDIA Corporation (NASDAQ:NVDA) offers graphics and compute and networking solutions in the US, Taiwan, China, Hong Kong, and internationally.

NVIDIA Corporation (NASDAQ:NVDA) continues to maintain a dominant position in the graphics processing unit (GPU) and AI chip markets. The company’s success revolves around its strong focus on innovation. Its current flagship AI chip, the Hopper architecture, saw healthy demand from cloud service providers and enterprises alike. Wall Street remains optimistic about the Blackwell GPU, which should drive significant revenue growth over the medium to long term.

NVIDIA Corporation (NASDAQ:NVDA)’s CUDA programming platform should continue to act as a significant competitive advantage, providing developers with a strong ecosystem for AI and high-performance computing applications. The company’s dominance in the AI chip market enabled it to capitalize on the robust growth in AI investments throughout industries.

Hyperscale customers, such as well-established cloud service providers, continue to invest in AI infrastructure. Capital expenditure from such customers has been tagged as a key indicator of demand for NVIDIA Corporation (NASDAQ:NVDA)’s systems. Analysts at Evercore ISI upped their price objective on the company’s shares from $145.00 to $150.00, giving an “Outperform” rating on 23^rd August.

Baron Funds, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“Given the stellar returns of their stocks over the last couple of years, particularly NVIDIA Corporation, and the weights they grew to in the portfolio, we trimmed NVIDIA and Microsoft Corporation during the period. As we articulated above, our views regarding AI and the leadership of these two companies have not changed. On an absolute basis, NVIDIA and Microsoft remain the top two positions in the portfolio – as of this writing NVIDIA is our largest position and Microsoft is second – and both remain material overweights versus the Benchmark.”