2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 89
NVIDIA Corporation (NASDAQ:NVDA) is a Santa Clara, California-based company known for manufacturing leading graphic processing units (GPUs) and its related software and services.
NVIDIA Corporation (NASDAQ:NVDA) has developed the first-of-its-kind Quantum Optimized Device Architecture (QODA) that intends to make quantum computing more accessible by providing a hybrid programming environment with classical and quantum capabilities. NVIDIA Corporation (NASDAQ:NVDA) has partnered with Quantinuum to develop applications based on its platform. The company is currently focused on aiding developers in simplifying the coding task on quantum computers by employing its GPUs. Programming in a quantum computing environment is a very challenging task, and NVIDIA Corporation (NASDAQ:NVDA) is playing a bridging role between the roles of classical computers and quantum computers.
Baron Funds shared its outlook on one of the best quantum computing stocks in its Q3 2022 investor letter. Here’s what the firm said:
“NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor company and a leader in gaming and accelerated computing. NVIDIA is powering the growth of AI from the data center to the edge. Shares detracted due to inventory right sizing in NVIDIA’s gaming segment coupled with the broader market sell-off in growth stocks. Given NVIDIA’s end-to-end AI platform and its leading market share in gaming, data centers, and autonomous machines, along with the size of these markets, we believe the company can sustain its growth trajectory. See further discussion of NVIDIA in the top net purchases section below.
During the third quarter, we took advantage of its stock sell-off to add to NVIDIA Corporation, a fabless semiconductor mega cap that is a global leader in gaming cards and accelerated computing hardware and software. The sell-off was driven by a near-term inventory correction in gaming as a result of a COVID-related pull forward in demand as well as the shift in the Ethereum cryptocurrency from proof-of-work to proof-of-stake. Additionally, investors are concerned over the potential slowdown in data center revenues as a result of a weaker macroeconomic environment as well as the recently announced limitations on semiconductor shipments to China. Despite the near-term uncertainty, we believe that NVIDIA’s end-to-end AI platform and its leading market share in gaming, data centers, and autonomous machines, along with the size of these markets, would enable the company to benefit from durable growth for years to come and therefore view the stock price where we added shares as a compelling value for long-term investors. With demand for computing power doubling every one to two years, and Moore’s Law slowing down, there is more need for computing than ever. At the same time, “near free” supply growth (that was possible thanks to Moore’s Law) has slowed dramatically. NVIDIA’s accelerated architecture, with parallel computing at scale, answers that need.”
Of the 920 hedge funds in Insider Monkey’s database as of Q3 2022, NVIDIA Corporation (NASDAQ:NVDA) was held by 89 hedge funds.
