12 Best FAANG+ Stocks to Invest in Right Now

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of hedge funds: 193

NVIDIA Corp. (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system on a chip units (SoCs), and AI hardware and software. Over the years, NVIDIA has expanded its offerings from gaming GPUs to include data center solutions, AI computing, and deep learning technologies. The company’s GPUs are widely used in data centers for high-performance computing, AI training, and inference, making it a critical player in the data center ecosystem. NVIDIA’s products are essential for powering advanced applications in AI, machine learning, and data analytics. Its market cap currently stands at $2.9 trillion, up from $145 billion five years ago.

NVIDIA Corp. (NASDAQ:NVDA) has transitioned from a PC gaming GPU company to a dominant player in the accelerated computing space, offering full-stack computing infrastructure with data-center-scale solutions. The company’s strength is evident in its commanding over 80% market share in GPUs. NVIDIA has greatly benefited from the growing adoption of AI and machine learning technologies, driving strong demand for its chips. The company’s revenue, profitability, and market capitalization have surged since the introduction of GenAI models like ChatGPT.

Despite the recent selloff triggered by news related to Deepseek, the stock remains a consensus Buy among analysts, who still see an upside of around 36%. Theo Mass, portfolio manager at Northcape Capital, recently remarked that the 17% overnight plunge in Nvidia shares was ‘wildly overdone,’ as it did not fundamentally change the growth outlook for NVIDIA Corp. (NASDAQ:NVDA). Addressing concerns about Deepseek potentially hampering demand, Northcape Capital remains optimistic about NVIDIA’s future. As Mr. Mass stated:

“The biggest game in town that these mega-cap tech companies and US chip suppliers are pursuing is still inference AI over the next five to 10 years. While training has been a significant start to the AI phenomenon, in five or 10 years, Deepseek will be a small start-up in the grand scheme of things. Nvidia has noted that 40% of their revenue is already related to inference AI, and they welcome some competition and optimization in these models. So, I’m still bullish on Nvidia.”