5 Best Investments for Beginners in 2024

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 173

Quarterly Revenue Growth: 265.28%

NVIDIA Corporation (NASDAQ:NVDA), a leading American multinational technology company based in Delaware, is highly esteemed for its prowess in integrated circuit development. Its expertise extends across various devices, ranging from electronic game consoles to personal computers (PCs).

In Insider Monkey’s analysis of hedge fund holdings for the December quarter of 2023, 173 out of the 933 hedge funds included were shareholders of NVIDIA Corporation (NASDAQ:NVDA). Notably, Rajiv Jain’s GQG Partners emerged as the largest hedge fund investor with a stake valued at $6.8 billion.

SaltLight Capital stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:

“We were fortunate to have some exposure to some of the ‘Magnificent Seven’ – Amazon, NVIDIA Corporation (NASDAQ:NVDA), Meta Platforms and Google (although in aggregate, we still hold a smaller weighting than the S&P 500).

While we are cautious in AI infrastructure, we do think there are mispriced opportunities in areas of application software where AI can be infused to make a step change improvement. Posted in our office is this chart that ASML provides at each of its investor days. This chart is a little outdated from 2021, but we think illustrates how value (in operating profit) was distributed across semiconductors, hardware, and then software & services. It’s very clear that most of the economic value in the past has accrued to the software services (in gray) built on the backs of highly technical companies run by extremely smart people.

Why is this? We think it is due to a combination of distribution and network effects. Our working hypothesis right now is that this will likely remain a similar outcome in the AI epoch. One outlier right now is Nvidia which is capturing 80% margins..” (Click here to read the full text).