5. NVIDIA Corp. (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corp. (NASDAQ:NVDA) is a computing infrastructure company. Its Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms. The Graphics segment offers various GPUs for gaming, PCs, enterprise workstation graphics, cloud-based visual & virtual computing, infotainment systems, and others.
The company’s Data Center segment generated a record $35.6 billion in FQ4 2025 revenue which marked a 93% year-over-year rise. For the entire FY25, the revenue doubled as compared to the year-ago period due to the surging demand for AI infrastructure. The adoption of the company’s Blackwell architecture drove this growth. In FQ4 alone, Blackwell’s sales reached $11 billion and marked the fastest product ramp in the company’s history. It delivers up to 25x higher token throughput and 20x lower cost than the Hopper 100 for reasoning AI.
On March 28, Bank of America reiterated a Buy rating with a $200 price target for the company due to its optimism about NVIDIA Corp. (NASDAQ:NVDA) despite the new US AI Diffusion Rules that impact AI chip distribution. Large cloud service providers (CSPs) like Azure, GCP, AWS, and OCI are deploying Blackwell systems to meet the growing demand for AI infrastructure. Consumer internet companies such as Meta are using its GPUs for GenAI and deep learning applications.
Guinness Global Innovators is highly bullish on NVIDIA Corp. (NASDAQ:NVDA) due to its dominant AI chip market position. It stated the following in its Q4 2024 investor letter:
“For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund’s top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia’s ‘Hopper’ GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current ‘Hopper’ GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia’s extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to “inference” (the speed at which AI models respond to queries). Throughout the year, Nvidia’s financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia’s data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia’s technological leadership, ensuring continued momentum into 2025. While Nvidia’s valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.”
