12 Best Technology Stocks to Invest In for the Long Term

5. NVIDIA Corp. (NASDAQ:NVDA)

Number of Hedge Fund Holders: 193

NVIDIA Corp. (NASDAQ:NVDA) is a global leader in GPU manufacturing and is currently powering the AI revolution. Initially known for gaming, its GPUs now power data centers, robotics, and autonomous vehicles.

The Blackwell architecture, led by the flagship GB200 GPU, represents a significant technological advancement for the company. Strong demand for Blackwell and Hopper platforms has fueled data center growth, with H200 GPU sales reaching double-digit billions. In Q3 2024, it achieved record revenue of $35.1 billion, a 94% year-over-year increase. The data center segment surged 112% to $30.8 billion.

Its GPU revenue surged 67% annually over the past 3 years. While concerns exist about AI spending fluctuations by Big Tech, the rapid advancement of AI models necessitates increasing computing power. For instance, Meta’s Llama model required a 10x increase in computing power between versions 3 and 4. NVIDIA Corp. (NASDAQ:NVDA), with a 90% market share, is the primary supplier of this computing power. Its strong market position, innovative technology, and impressive financial performance position it as a highly promising stock.

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.”