5 American Stocks with High Exposure to China

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 84

NVIDIA Corporation (NASDAQ:NVDA) is headquartered in Santa Clara, California, providing graphics, networking, and semiconductor solutions in the United States, Taiwan, China, and internationally. The company sells its GPUs to many Chinese firms, and the slowdown in consumer demand in China has really impacted NVIDIA Corporation (NASDAQ:NVDA). 

On August 25, Morgan Stanley analyst Joseph Moore said NVIDIA Corporation (NASDAQ:NVDA)’s softer guidance in its gaming business should “clearly frame the bottom” after a 60% drop in quarterly revenues in only two quarters. However, the data center slowdown and ancillary challenges around the business make him “pause” due to the higher multiple and the “unexpected questions” on the data center side. After NVIDIA Corporation (NASDAQ:NVDA)’s Q2 results, he maintained an Equal Weight rating on the stock with a $182 price target. 

According to Insider Monkey’s Q2 data, 84 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA), down from 102 funds in the last quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is one of the significant stakeholders of the company, with 2.5 million shares worth about $386 million.

Here is what ClearBridge Large Cap Growth ESG Strategy has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2022 investor letter:

“Chipmaker Nvidia (NASDAQ:NVDA) has also been pressured by multiple compression of higher growth companies and weakness in its gaming business. While Nvidia has grown into a top 10 position with its strong performance through late 2021, we have been consistently trimming the position to derisk against short-term volatility in its gaming business. The company is clearly exposed to the semiconductor cycle but also participates in the secular growth of cloud and AI adoption through its data center business. With these secular drivers intact and new products ramping up in the second half of the year, we are maintaining an overweight to the company.”