3. NVIDIA Corp. (NASDAQ:NVDA)
Volume: 367.867 million
Average Volume (3-Month): 345.252 million
Number of Hedge Fund Holders: 179
NVIDIA Corp. (NASDAQ:NVDA) provides graphics, computing, and networking solutions, and is majorly known for manufacturing graphics processing units (GPUs). These chips are essential for rendering graphics, but they’re also used in AI, machine learning, and data centers.
Recently, Elon Musk announced that Colossal, an AI training system, had been brought online by his AI startup, xAI. The system is powered by 100,000 H100 GPUs made by NVIDIA Corp. (NASDAQ:NVDA). For comparison, Google’s AI model uses 90,000 GPUs while Meta’s uses 70,000. H200 and the rumored Blackwell-based GPUs are slowly replacing the H100 GPUs.
Musk has already announced that Colossal would double in size by shifting to H200 GPUs in the coming months. He claims only 50,000 replacement H200 GPUs would achieve size doubling. The Blackwell chips are even faster and more efficient, the top-end capacity being 36% higher than the H200 and 66% higher in total bandwidth.
In FQ2 2025, the company recorded a year-over-year improvement of 122.40% in revenue. Data center revenue was up 54% year-on-year, driven by strong demand for NVIDIA Hopper, GPU computing, and networking platforms. Cloud service providers represented roughly 45% of data center revenue.
179 hedge funds held the company’s shares. Fisher Asset Management is the biggest shareholder with shares worth $11.54 billion, as of June 30. In late August, management also approved a buyback of $50 billion in equity shares.
NVIDIA Corp. (NASDAQ:NVDA) faces pressure to launch new products to maintain investor confidence. Delays in Blackwell chip production and concerns about high GPU prices impact the demand. The company’s future success depends on effective AI monetization. By the end of fiscal year 2025 and each year after, it aims to achieve and maintain 100% renewable electricity for its offices and data centers.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. Simply put, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption, in our view. During the quarter, the company reported better-than-expected fiscal first quarter results driven by strong demand from data centers. Additionally, management noted that large cloud service providers, contributing approximately 45% of data center sales, recognize the high return on investment offered by Nvidia’s computing solutions, which are driving AI spending. The company also introduced its next-generation H200 chip, which nearly doubles the inference performance compared to the H100 chip, enhancing how trained AI models process new data. Lastly, management raised their fiscal second quarter guidance, noting that demand for their current H100 chips remains strong, and that demand for their next generation products is estimated to outstrip supply over the next year. We continue to believe the company is well positioned to potentially benefit from the growing AI data center workloads, which are driving demand for the increased interconnections and fully accelerated software stacks, thereby enabling leading application performance and fast result times.”
