1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA), the pioneer of GPU-accelerated computing, specializes in products and platforms for the gaming, professional visualization, data center, and automotive markets. The chip maker is known for its GPU technology which is utilized in crypto mining and makes it an important company in the crypto space.
The recent development from NVIDIA made the firm outshine as it unveiled the Blackwell GPU architecture at NVIDIA GTC 2024. Blackwell is the largest GPU ever built with 208 billion transistors which is more than 2.5 times the amount of transistors in NVIDIA Hopper GPUs, thereby unlocking a new era of accelerated computing and generative AI. While customers are currently gearing up to adopt Blackwell which has been widely sampled, the firm expects to ship several billion dollars in Blackwell revenue in Q4.
For the second quarter ended July 28, NVIDIA reported a record quarterly revenue of $30 billion, up 122% year-over-year, and well above the firm’s outlook of $28 billion. Data Center revenue was also at a record $26.3 billion, increasing by 154% as compared to the prior year. This increase was attributable to the strong demand for NVIDIA Hopper, GPU computing, and its networking platforms. Simultaneously, compute revenue increased by more than 2.5 times and networking revenue rose by more than 2 times relative to 2023.
The company also expects its sovereign AI revenue to hit low-double-digit billions this year, fueled by AI-powered chatbots and generative AI copilots. It is working with many Fortune 100 companies on AI initiatives across geographies and industries. An example of this is SAP using NVIDIA to build dual Co-pilots. During the recent quarter, the company made a major stride in enterprise AI by introducing a new NVIDIA AI foundry service to supercharge generative AI for enterprises with Meta’s Llama 3.1.
According to Insider Monkey’s Q2 data, NVIDIA Corporation (NASDAQ:NVDA) is held by 179 hedge funds, compared to 186 funds in the prior quarter. Citadel Investment Group is the dominant shareholder in the company with a position worth $18 billion.
While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than the ones mentioned on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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