5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 186
NVIDIA Corporation (NASDAQ:NVDA) is one of the most popular AI stories at the moment. The company is pioneering AI software and hardware products. The company’s Advanced AI platform for Enterprise improves productivity, streamlines AI workflows, and ensures faster deployment and processing of AI. Earlier this year, the company introduced its Blackwell graphics processing unit (GPU), backed by six different technologies in data processing, design automation, drug design, quantum computing, and generative AI.
Overall, the company logged $22.6 billion in data center revenue, up 23% from the previous quarter and 427% year-over-year. The revenue growth was driven by strong demand for the NVIDIA Hopper GPU Computing platform. Compute revenue grew by 5x and networking revenue expanded by 3x compared to the previous year. The Hopper GPU is one of the world’s first accelerated computing platforms, built with over 80 billion transistors. Nvidia’s advancements in AI are accelerating at a rapid pace. On June 19, the company launched the NVIDIA Omniverse Cloud Sensor RTX, a set of microservices that enable the development of autonomous machines using AI.
Moor Insights & Strategy Founder, CEO, and Chief Analyst Patrick Moorhead, recently talked about NVIDIA (NASDAQ:NVDA) in an interview on Yahoo Finance. He positions Nvidia as the primary provider of AI infrastructure systems. He compares Nvidia’s position to Cisco, the driver of infrastructure from the internet age in the early 2000s. Moorhead highlights that the company’s dominant position is backed by sustained enterprise demand, and he sees nothing changing in the next six to nine months. However, he suggests that to maintain its dominance, Nvidia needs to emphasize growth in enterprise.
At the close of Q1 2024, 186 investors were bullish on NVDA, with total stakes amounting to $48.3 billion. Of those, Ken Griffin’s Citadel Investment Group was the highest stakeholder with a position of $18.74 billion.
On July 1, Morgan Stanley maintained an overweight rating on the stock and raised its price target from $116 to $144.
Here are some comments about Nvidia from the Meridian Funds Q1 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading designer of graphics processing units (GPUs) for the gaming and professional markets, as well as system-on-a-chip units for the mobile computing and automotive markets. The company has experienced strong performance recently due to booming demand for its data center products, particularly those related to artificial intelligence. A major driver of Nvidia’s recent success has been the growing adoption of its GPU accelerators for AI training and inference across various end markets. The company’s GPUs have become an industry standard for training large language models (LLMs), and its networking solutions, such as NVLink and InfiniBand, are critical to maximizing the performance of AI systems. Nvidia’s latest Blackwell GPU platform is expected to further extend its lead in the AI accelerator market, with significant performance and total cost of ownership benefits over its predecessors. As the AI market continues to expand with growing adoption across enterprises and sovereign nations, we expect Nvidia to maintain its dominance and experience sustained growth in its data center business. Beyond data centers, Nvidia has also benefited from strong demand in its gaming business, which has recovered after a period of inventory digestion in 2022. The company’s gaming GPUs have been well-received, and its focus on the high-end market has supported growth in average selling prices. Looking ahead, we expect the gaming market to remain healthy with ongoing growth potential. Nvidia also sees opportunities to diversify its business and foray into new markets, such as automotive and robotics. We continued to hold our position in Nvidia.”
