10 Best Stocks to Invest in for the Next 10 Years

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 223

Mark Lipacis, an analyst from Evercore ISI, maintained a “Buy” rating on NVIDIA Corporation (NASDAQ:NVDA)’s stock, while the associated price target was kept the same at $190.00. The rating is backed by factors positioning the company favorably in the broader market. The analyst believes that the company remains a preferred platform for hyperscalers because of its strong ecosystem, with demand for its GPUs continuing to outstrip supply. Moreover, AI advancements, like improved cost efficiencies and higher computational needs for multi-modal models, can fuel further adoption of NVIDIA Corporation (NASDAQ:NVDA)’s technology, aiding the long-term growth thesis.

The company remains well-placed to achieve strong growth over the upcoming decade, thanks to the dynamic end markets it can reap the benefits from. The pivot to accelerated computing in data centers in a bid to accelerate tasks and decrease consumption of power and operating costs can result in significant revenue opportunities for NVIDIA Corporation (NASDAQ:NVDA). The demand for AI-specific software and hardware solutions is expected to grow, which will further strengthen the company’s dominance for the years to come. Therefore, expansion into data centers, software, and custom AI chips will help NVIDIA Corporation (NASDAQ:NVDA) see exponential revenue growth for the next decade.

Brown Advisors, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“The main driver of our 2024 relative underperformance was not being invested in NVIDIA Corporation (NASDAQ:NVDA). Since ChatGPT introduced the power of generative artificial intelligence to the world on 30 November 2022, the Global Leaders Strategy has outperformed its benchmark despite being underweight the USA and specifically underweight the “Magnificent Seven”.7 2024 underperformance of -2.81% versus our benchmark was almost precisely matched by the individual outperformance of NVIDIA, which we did not own. On balance the rest of the portfolio is doing just fine albeit with areas of strength (AI) and weakness (EM financials) discussed below.

We wrote about the concentration within global indexes last year and this continued with only 29% of companies within the ACWI Index at the start of 2024 outperforming this benchmark over the year. Our capital allocation added value in 2024 as five of our top ten largest weights over the year were also in our top ten percentage winners. Conversely, within our ten worst performers, seven were also amongst our smallest ten weights. Capital allocation is critical when index hit rates are below 50%…” (Click here to read the full text)