10 Most Promising Tech Stocks According to Hedge Funds

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 179

NVIDIA Corporation (NASDAQ:NVDA), also referred to as the AI star, is one of the most promising technology 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. 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.

On October 14, Ben Reitzes, Melius Research’s head of technology research, appeared in an interview on CNBC where he discussed his outlook on NVDA. He suggests that there is a lot of upside near the company’s growth estimates and revenue, quite less than any other stock. According to him, NVDA will be trading at one time its P/E to growth ratio in 2025, which is highly attractive for a name as influential as NVDA. He adds that the demand for its Blackwell chips is huge and the company will have to ramp up production.

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.

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.”