5 Best 5G Stocks To Buy Now

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 132

NVIDIA Corporation (NASDAQ:NVDA) offers several software and hardware solutions related to 5G. NVIDIA Corporation (NASDAQ:NVDA)’s AI-on-5G platform is one of the most notable platforms in the space. It includes NVIDIA Corporation (NASDAQ:NVDA)’s NVIDIA-Certified Systems™, NVIDIA converged accelerators, the NVIDIA Aerial™ SDK for software-defined 5G virtual radio area networks (vRANs), and a portfolio of enterprise AI applications and SDKs. NVIDIA Corporation (NASDAQ:NVDA)’s chips and software are also used by other companies to develop their 5G infrastructure. For example, in May, NVIDIA Corporation (NASDAQ:NVDA) joined hands with Softbank to develop a 5G/6G platform using NVIDIA GH200 Grace Hopper™ Superchip. The platform will use NVIDIA MGX™ reference architecture with Arm Neoverse-based GH200 Superchips.

Polen Focus Growth Strategy made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2023 investor letter:

NVIDIA Corporation (NASDAQ:NVDA) was the largest relative headwind to the Portfolio as we do not own this “AI darling.” NVIDIA shares rose more than 50% in the second quarter alone, following a 90% increase in the share price in the first quarter of 2023. NVIDIA supplies GPUs (graphics processing units), the preferred (often necessary) semiconductors for machine learning and AI. On their recent earnings call, NVIDIA management announced that they expect a significant increase in demand for the GPUs for datacenter customers beginning this quarter and lasting at least through the end of this year. NVIDIA’s datacenter business, which was almost non-existent from a revenue perspective eight years ago, is now the company’s largest and fastest-growing business.

We find NVIDIA’s competitive advantages to be quite large around its technology, but even more importantly around its full-stack solutions, including highly integrated hardware, software, and networking equipment and a robust developer ecosystem. It would be difficult to disrupt these competitive advantages in our view. That said, with a greater than $1 trillion valuation on the back of what feels like peak-level AI exuberance since OpenAI’s breakthrough with ChatGPT, we believe virtually all the upside opportunities we can currently see for the company are already priced in…” (Click here to read the full text)