5) NVIDIA Corporation (NASDAQ:NVDA)
Average Upside Potential: ~40%
Number of Hedge Fund Holders: 223
TD Cowen analyst Joshua Buchalter reiterated the bullish stance on NVIDIA Corporation (NASDAQ:NVDA)’s stock, offering a “Buy” rating on February 25. The rating is backed by a combination of factors highlighting its healthy market position and future potential. As per the analyst, the demand for Blackwell products is projected to remain strong, which can alleviate some of the market’s concerns. Furthermore, NVIDIA Corporation (NASDAQ:NVDA)’s advancements in AI infrastructure, mainly with model innovations and optimizations, placed it well for future growth.
The analyst believes that the flexibility of Blackwell systems to serve training and inference needs, together with the company’s comprehensive software ecosystem, reinforces its competitive advantage. Elsewhere, Stacy Rasgon from Bernstein maintained a “Buy” rating on the company’s stock with a price objective of $185.00. NVIDIA Corporation (NASDAQ:NVDA) has highlighted that it has ramped up the massive-scale production of Blackwell AI supercomputers. Furthermore, AI continues to advance at light speed, with agentic AI and physical AI setting the stage for the next wave to revolutionize the largest industries.
For Q1 2026, NVIDIA Corporation (NASDAQ:NVDA) expects revenues of $43.0 billion, plus or minus 2%. Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor company specializing in compute and networking systems for accelerated computing and AI. Shares increased 10.6% for the quarter and were up 170.3% in 2024, on strong quarterly results, with record data center revenue, which surpassed $30 billion, driven by demand for its Hopper GPUs, while Gaming and Automotive also beat expectations. Key investor debates include the continued progress on improving the capability of AI models (e.g. scaling laws – see more in the outlook section below), transition from AI training to inference and the potential impact on competitive dynamics, and the pace of adoption of AI across industries. Despite near-term uncertainties, we maintain conviction in NVIDIA’s leadership in accelerated computing, driven by its ability to innovate and adapt to market shifts. With robust margins, a dominant data center presence, and a growing ecosystem across hardware and software, we believe NVIDIA is well positioned to capitalize on the structural growth in AI and high-performance computing.”
