1. NVIDIA Corporation (NASDAQ:NVDA)
Navellier & Associates’ Stake Value: $53,432,970
Number of Hedge Fund Holders: 186
NVIDIA Corporation (NASDAQ:NVDA) ranks first in Navellier & Associates’ top 10 stock picks, holding 591,360 shares valued at $53,432,970. This investment makes up 6.58% of Navellier & Associates’ portfolio. NVIDIA Corporation (NASDAQ:NVDA) is a leader in graphics processing units (GPUs), which are crucial for AI and machine learning. Additionally, NVIDIA Corporation (NASDAQ:NVDA) is expanding into new markets such as data centers, automotive technology, and edge computing, which helps reduce risk and opens up more revenue opportunities.
NVIDIA Corporation (NASDAQ:NVDA)’s opportunity is huge, as seen with AI startup CoreWeave, which recently hit a $19 billion valuation due to its use of NVIDIA GPUs. As reported by CNBC, NVIDIA Corporation (NASDAQ:NVDA) controls 80% of the AI chip market, potentially translating to $1.8 trillion in sales with high profit margins. For fiscal year 2024, NVIDIA Corporation (NASDAQ:NVDA) is projected to generate $31.5 billion in revenue, up from $26.9 billion the previous year, thanks to strong demand for its GPUs in AI and data centers. NVIDIA Corporation (NASDAQ:NVDA)’s earnings per share (EPS) are expected to increase to $10.15, from $8.73 last year, and its gross margins are also expected to stay high at around 66%.
Polen Focus Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“In the second quarter, the dominant narrative in markets continued to be generative AI (GenAI). If it wasn’t immediately evident from NVIDIA Corporation’s (NASDAQ:NVDA) meteoric rise to among the largest companies in the world, one need only look so far as the Semiconductor and Technology Hardware industries as a gauge of sentiment, collectively accounting for greater than 70% of the Russell 1000 Growth (“the Index”) and 85% of the S&P 500 headline return quarter to date.
Our Portfolio has no exposure to NVIDIA or other Semiconductor companies currently benefiting from demand for foundational AI Hardware. The largest relative detractors in the quarter were NVIDIA, Apple, and Salesforce.
For the second quarter in a row, NVIDIA represented the top detractor to relative performance as the stock climbed another 37%, bringing the year-to-date return to +150%. As of this writing, NVIDIA is the third largest company in the world, but for a brief moment, it surpassed Microsoft to become the largest company in the world. Yet again, the company delivered blowout results that surpassed already lofty expectations, reinforcing the narrative that NVIDIA is the only obvious “AI winner” due to the amount of revenue it is currently generating…” (Click here to rad the full text)
While we recognize NVIDIA Corporation (NASDAQ: NVDA)’s growth potential, 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 NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
