1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) is the best computer hardware stock to invest in right now. Previously, the company was known for revolutionizing the gaming market with its Graphics Processing Units (GPUs). Currently, it is a leader in AI infrastructure with its GPUs powering data centers, autonomous driving, and robots.
The company still generates handsome revenue from its Gaming segment. It generated $3.8 billion from the segment during the fiscal third quarter of 2025, up 15% year-over-year. However, its GPU application within the data center industry is the real game changer. Data Center revenues were up 112%, standing at $35.1 billion. The segment revenue even topped management’s expectation of $32.5 billion.
That’s not it, NVIDIA Corporation (NASDAQ:NVDA) has been continuously upgrading its GPU portfolio to cater to the growing need for its products in the AI and data center industry. On March 18, the company unveiled the Blackwell platform marking a significant advancement in AI computing technology. The Blackwell architecture includes the GB200 GPU, which is recognized as one of the most powerful chips available right now. The demand for its Blackwell and Hopper platform led the Data Center revenue growth with its H200 GPU sales increasing to double-digit billions of dollars. Management categorized it as the fastest product ramp-up in its history.
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.”
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) to grow, 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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