12 Best Quality Stocks to Invest in Now

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 223

American investment banking firm TD Cowen reiterated a “Buy” rating on NVIDIA Corporation (NASDAQ:NVDA)’s stock. Analyst Joshua Buchalter at TD Cowen has maintained the price objective of $175 on the company’s stock based on the factors that demonstrate its dominance in accelerated computing. The firm opines that with healthcare emerging as a major AI opportunity, NVIDIA Corporation (NASDAQ:NVDA) remains well-placed to play a critical role in advancing the industry. TD Cowen hosted the company’s VP of Healthcare, Kimberly Powell, at the 45^th Annual Health Care Conference.

Powell mentioned that NVIDIA Corporation (NASDAQ:NVDA)’s Blackwell architecture, given its performance boost as well as cost efficiencies, is expected to fuel further adoption in the healthcare sector. Furthermore, NVIDIA Corporation (NASDAQ:NVDA) sees 3 critical AI-driven healthcare growth areas. These include drug discovery, digital health, and digital devices. Overall, TD Cowen believes that the company continues to evolve from a GPU-focused company to a comprehensive hardware and software platform provider, with a focus on integrating AI, deep learning solutions, and cloud computing.

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its Q4 2024 investor letter. Here is what the fund said:

“NVIDIA Corporation (NASDAQ:NVDA): NVDA was a top contributor in the fourth quarter following blowout 1Q results and guidance driven by strong data center sales (+427% year-over-year). The company reported revenue of $26 billion, up 262% year-over-year, and EPS of $6.12, up 462% year-over-year and 9% ahead of expectations. Revenue guidance for 2Q of $28 billion was 5% above very high expectations. The artificial intelligence arms race, kicked off by ChatGPT and Alphabet’s Bard, among others, has generated tremendous demand for Nvidia’s next generation graphic processors.

NVDA is the leading designer of graphics processing units (GPU’s) required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming-focused chip vendor to one of the largest semiconductor/software vendors in the world. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. Following recent results, Jensen Huang, founder and CEO of NVIDIA stated in the company’s press release, “a trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”