10 Most Promising Long-Term Stocks According to Hedge Funds

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 179

Analyst Upside as of October 13, 2024: 11%

NVIDIA Corporation (NASDAQ:NVDA), also referred to as the AI star, is one of the most promising long-term stocks according to hedge funds. The chip maker is also a provider of cloud services and gaming products.

The company is rapidly growing and garnering attention from across the globe to the point that it has the power to influence financial markets. Such can be attributed to its advancements in technology and its strategic partnerships. Recently the company closed a deal with Salesforce and also launched a new AI tool to meet the needs of the next generation of mobiles, robots, autonomous vehicles, and 5G. On October 8, NVIDIA Corporation (NASDAQ:NVDA) partnered with TSMC to push the limits for the next generation of advanced semiconductor chips using Nvidia’s computational lithography platform.

NVIDIA Corporation (NASDAQ:NVDA) is expected to generate $32.5 billion in revenue during the fiscal third quarter of 2024. This revenue is likely to come from its rapidly growing Hopper architecture and its new and improved Blackwell Chips. By the end of this year, the company is also expected to ramp up production for the chips.

There is no denying that NVIDIA Corporation (NASDAQ:NVDA) has a crucial role to play in the artificial intelligence industry, which explains why 179 hedge funds were bullish on the stock at the close of Q2 2024. Analysts’ 12-month median price target of $150 points to a 111% upside from current levels.

Ithaka Group’s Ithaka US Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including: data center acceleration, artifi cial intelligence (AI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefi ted from tremendous excitement surrounding the further development of generative AI and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future; Second, Nvidia posted another strong beat[1]and-raise quarter, where the company upped its F2Q25 revenue guidance above Street estimates, showcasing its dominant position in the buildout of today’s accelerated computing infrastructure.”