3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q2: 179
NVIDIA Corporation (NASDAQ:NVDA) has made a name for itself as a poster child of the artificial intelligence race and one of the stocks sure to make any investor rich in the next five to ten years. The company is known for producing the most sought-after graphics processing units (GPUs) that can handle more complex workloads, such as training large language models and AI applications.
Strong demand was the catalyst behind NVIDIA Corporation (NASDAQ:NVDA), accounting for 98% of shipments of GPUs for data centers last year, and it has a market share of more than 80% for AI chips. One reason the company has achieved such a dominant position is the superior performance of its hardware.
Additionally, the CUDA software ecosystem contributes to the company’s success in gaining such a strong market position. Hundreds of software libraries make it easier to develop GPU-accelerated applications with CUDA. Since Nvidia is the only chipmaker offering anything like CUDA, Nvidia GPUs have become the industry standard for data center accelerators.
NVIDIA Corporation (NASDAQ:NVDA) is anticipated to grow quickly and generate more shareholder value due to the strong demand for AI infrastructure. Grand View Research projects that through 2030, the market for AI accelerators will grow at a rate of 29% annually, while spending on AI services, software, and hardware will compound at a rate of 36% annually. This is encouraging for Nvidia’s investors.
The strong demand for the company’s GPUs was the catalyst behind the 122% year-over-year growth in revenue in Q2 to $30 billion. Earnings were up 168% from last year to $0.67 a share. Given that the artificial intelligence race is just starting, it affirms why NVidia is one of the stocks that will make you rich in 5-10 years, going by solid financial results.
At the close of Q2 2024, 179 investors were bullish on NVIDIA Corporation (NASDAQ:NVDA), down from 186 in the previous quarter.
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, artificial intelligence (AI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefited 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.”
