1. NVIDIA Corp. (NASDAQ:NVDA)
Upside Potential as of March 10: 55.29%
Number of Hedge Fund Holders: 223
NVIDIA Corp. (NASDAQ:NVDA) delivers cutting-edge graphics, compute, and networking solutions globally. From powering immersive gaming experiences and professional visualization to revolutionizing data centers and autonomous vehicles, NVIDIA’s technologies, including its renowned GPUs and AI platforms, are essential for a wide range of industries and applications.
The company’s FY25 revenue more than doubled year-over-year and generated $115.2 billion. In FQ4 2025, revenue reached a record $35.6 billion, which was a 93% year-over-year increase. This surge came from the data center segment, which was driven by Blackwell and Hopper 200 products. Blackwell sales hit $11 billion in FQ4, which was fueled by customers scaling infrastructure with massive GPU clusters and surging inference demand. Blackwell offers performance and cost advantages over Hopper 100.
On March 4, Bernstein reiterated an Outperform rating on the company with a $185 price target. Despite AI market concerns, Bernstein is optimistic on the company due to $11 billion in January Blackwell sales. The strong sales signal demand and easing supply issues previously seen. They dismissed concerns about DeepSeek impacting AI demand and highlighted multiple catalysts, which include rising spending intentions, a new product cycle, and the upcoming GTC event, which is NVIDIA Corp.’s (NASDAQ:NVDA) GPU Technology Conference.
Baron Fifth Avenue Growth Fund is highly bullish on NVIDIA Corp. (NASDAQ:NVDA) due to its dominant position in AI and data center technology, strong financial results, and continued innovation. It stated the following in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor company specializing in compute and networking systems for accelerated computing and AI. Shares increased 10.6% for the quarter and were up 170.3% in 2024, on strong quarterly results, with record data center revenue, which surpassed $30 billion, driven by demand for its Hopper GPUs, while Gaming and Automotive also beat expectations. Key investor debates include the continued progress on improving the capability of AI models (e.g. scaling laws – see more in the outlook section below), transition from AI training to inference and the potential impact on competitive dynamics, and the pace of adoption of AI across industries. Despite near-term uncertainties, we maintain conviction in NVIDIA’s leadership in accelerated computing, driven by its ability to innovate and adapt to market shifts. With robust margins, a dominant data center presence, and a growing ecosystem across hardware and software, we believe NVIDIA is well positioned to capitalize on the structural growth in AI and high-performance computing.”
While we acknowledge the growth potential of NVIDIA Corp. (NASDAQ:NVDA), our conviction lies in the belief that AI stocks hold great promise for delivering high 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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