12 Best NASDAQ Stocks To Buy in 2025

5. NVIDIA Corp. (NASDAQ:NVDA)

Number of Hedge Fund Holders: 193

NVIDIA Corp. (NASDAQ:NVDA) specializes in high-performance graphics processing units (GPUs). While its GPUs are well-known for gaming, they have become the driving force behind the AI revolution, as they power data centers, robotics, and autonomous vehicles.

Strong demand for the company’s Blackwell and Hopper platforms has driven data center growth, with H200 GPU sales reaching double-digit billions. In Q3 2024, the company reported a record revenue of $35.1 billion, marking a 94% year-over-year increase. The data center segment alone surged 112% to $30.8 billion. The company’s GPU revenue has surged 67% annually over the past three years, driven by the demand for computing power due to AI advancements.

NVIDIA Corp. (NASDAQ:NVDA) holds a dominant 90% market share as a supplier of computing power. It recently introduced its GeForce RTX 50 series graphics cards (including RTX 5090 and RTX 5080) which use the Blackwell architecture. These GPUs offer ~2x the performance of the previous generation and feature advanced AI technologies.

Analysts believe that its stock surge is justified by many factors. Wedbush’s Dan Ives expects continued tech dominance driven by AI investments. Bank of America highlights the company’s popularity among both institutional and retail investors. It maintains a $190 price target, which suggests a 27% upside. The release of Blackwell GPUs, with 12 months of orders already secured, is a key driver of this optimism.

Manole Capital Management highlighted that NVIDIA Corporation (NASDAQ:NVDA) more than tripled in value over the past year, driven by strong AI-related demand and continued revenue growth that exceeds market expectations. It stated the following in its Q3 2024 investor letter:

“As of this publication, Nvidia is up roughly 150% year-to-date. NVIDIA Corporation (NASDAQ:NVDA) was the largest gainer in the S&P 500 last year and has more than tripled in value over the last year. It hit an eye-opening market capitalization of $3 trillion in June, less than four months after it eclipsed the $2 trillion mark. Enthusiasm for everything AI-related, especially for the primary chip maker whose products are essential to powering AI technology, continues to fuel the market. Last quarter, and for the fifth consecutive quarter, Nvidia reported sales and profits that blew past Wall Street expectations. The stock rose +37% in the second quarter alone.”