10 Stocks Market Experts are Talking About These Days

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Funds Investors: 193

Todd Gordon, founder of Inside Edge Capital, said in a latest interview with CNBC that he likes NVIDIA Corporation (NASDAQ:NVDA) and expressed surprise that the stock is declining despite strong earnings growth:

“If you look at Nvidia, I mean, what do they grow earnings—50, 60, 70%? The shock and awe of Nvidia is off, but the stock is still well supported. I think the pipeline they’re looking at going forward—the AI evolution—is very much real. It’s going to touch multiple industries, multiple sectors. I like Nvidia.”

Nvidia stock has not been able to recover from the DeepSeek shock. Why? About 50% of the company’s revenue comes from large cloud providers, which are rethinking their plans amid the DeepSeek launch and looking for low-cost chips. Nvidia’s Q1 guidance shows a 9.4% QoQ revenue growth, down from the previous 12% QoQ growth. Its adjusted margin is expected to be down substantially as well to 71%. Market does not like when Nvidia fails to post a strong quarterly beat. The stock will remain under pressure in the coming quarters when the company will report unimpressive growth.

Columbia Threadneedle Global Technology Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) continued to outperform the market during the fourth quarter. The technology giant and top position in the fund delivered on sky-high expectations during the quarter and reported quarterly expectations that exceeded expectations. The red-hot company provided forward-looking expectations which were regarded as slightly lackluster as compared to prior quarters that smashed expectations. While the stock did churn a bit in the quarter, the AI giant remains top of mind for investors, especially as the company is on pace to satisfy the ‘staggering’ demand for its new product, Blackwell, which is poised to enter the market over the next year. The company’s position of owning all the major pieces of the evolving AI data center enables it to strengthen its competitive position and to define the technology roadmap for generations to come.”