4. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Funds Holding Stakes as of Q2: 179
Market Cap as of September 18, 2024: $2.84 Trillion
NVIDIA Corporation (NASDAQ:NVDA) is the best forever stock to buy now for anyone eyeing exposure in the burgeoning artificial intelligence space. The company provides graphics computing and networking solutions. Nevertheless, the strong demand for its graphics processing units (GPU) for gaming and AI models has propelled it into a trillion-dollar company.
NVIDIA Corporation (NASDAQ:NVDA) has emerged as one of the best-performing stocks, rallying by over 2,000% over the past five years. Despite the blockbuster gains, the company is still in the early years of growth given that the AI race is just but starting.
The fact that the semiconductor powerhouse remains the go-to company for chips to power artificial intelligence models and data centers affirms the tremendous opportunities for growth. To date, the need for its graphics processing units (GPUs) and various semiconductors has been overwhelming as cloud computing firms and other tech giants increase their investments in artificial intelligence (AI), aiming to maintain a lead in the market demand.
NVIDIA Corporation (NASDAQ:NVDA)’s clientele base for GPUs and other semiconductors includes some of the biggest tech giants, including Alphabet and Amazon Meta Platforms, among others. The solid clientele list has been the catalyst behind the company’s record-breaking financial results.
The company remains in a solid financial position, exiting the second quarter with a net income of $16.5 billion, up from $6.2 billion as of last year. Consequently, it had announced plans to return $50 billion through buybacks, affirming why it is one of the best forever stocks to buy now. Additionally, it rewards investors with a 0.03% dividend yield.
Buying Nvidia’s stock at a forward P/E of approximately 41 and a PEG ratio slightly over 0.7 remains a good deal for a firm experiencing triple-digit revenue increases. In total, 179 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA) in the second quarter.
Ithaka Group’s Ithaka US Growth Strategy mentioned the following about 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.”
