1. NVIDIA Corporation (NASDAQ:NVDA)
5-Year Revenue CAGR: 56.73%
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) is the world leader in accelerated computing. It is best known for its advanced graphics processing units (GPUs) and system-on-a-chip (SoC) solutions. Specializing in graphics, computing, and networking solutions, the corporation offers products and platforms for gaming, professional visualization, data center, and automotive markets.
The company is experiencing remarkable growth, particularly in its data center business, which has now become the company’s main source of revenue. In the second quarter of fiscal 2025, NVIDIA Corporation (NASDAQ:NVDA) reported record revenues of $30 billion, a 15% increase from the previous quarter and a staggering 122% year-over-year rise. The data center segment alone generated $26.3 billion, reflecting a 16% increase from the prior quarter and a 154% jump compared to the same period last year. This surge is largely driven by strong demand for NVIDIA’s Hopper GPU computing platforms and the anticipation surrounding the upcoming Blackwell architecture.
NVIDIA Corporation (NASDAQ:NVDA) is also expanding its product offerings with new technologies like Spectrum-X Ethernet for AI and NVIDIA AI Enterprise software, positioning itself as a comprehensive data center solution provider. The corporation is making significant progress in its enterprise AI efforts, establishing important partnerships and deploying solutions across various industries.
The automotive and healthcare sectors are emerging as key areas of growth for the company, driven by advancements in artificial intelligence and autonomous technologies. These developments present multi-billion dollar opportunities for NVIDIA Corporation (NASDAQ:NVDA) as it continues to innovate and expand its offerings in these high-potential markets.
Additionally, NVIDIA returned $15.4 billion to shareholders in the first half of fiscal 2025 through share repurchases and dividends, demonstrating strong financial health and shareholder value.
Over the past five years, NVIDIA Corporation (NASDAQ:NVDA) has grown its revenue at a compound annual growth rate (CAGR) of 56.73%, while its net income has increased at a CAGR of 80.81% during the same period. It is one of the most aggressive growth stocks to buy.
With these impressive results and ongoing advancements in AI technology, NVIDIA is well-positioned for future growth, making it an attractive stock for investors.
According to Insider Monkey’s Q2 database of over 900 hedge funds, 179 hedge funds held stakes in NVIDIA Corporation (NASDAQ:NVDA).
While we acknowledge the potential of NVDA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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