5 Best Sectors To Invest In Heading Into 2023

2. Semiconductors

Deloitte expects the global semiconductor industry to grow 10% in 2022 to over $600 billion for the first time ever, despite the shortages in the industry resulting in revenue misses of more than $500 billion this year worldwide. NVIDIA Corporation (NASDAQ:NVDA) is one of the top semiconductor stocks favored by elite hedge funds. 

On December 8, Tigress Financial analyst Ivan Feinseth reiterated a Buy recommendation on NVIDIA Corporation (NASDAQ:NVDA) but lowered the price target on the shares to $250 from $310, citing a re-rating of valuation. His revised target represents a potential return of more than 55% from present levels, noted the analyst, who sees NVIDIA Corporation (NASDAQ:NVDA)’s “industry-leading” position in Artificial Intelligence and several new products and partnerships allowing it to overcome short-term headwinds and position it for a new business upcycle.

According to Insider Monkey’s Q3 data, NVIDIA Corporation (NASDAQ:NVDA) was part of 89 hedge fund portfolios, compared to 84 in the prior quarter. Ken Fisher’s Fisher Asset Management is a prominent stakeholder of the company, with more than 12 million shares worth $1.5 billion.  

Vulcan Value Partners made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2022 investor letter:

“We also sold NVIDIA Corporation (NASDAQ:NVDA) during the quarter to allocate capital to new purchases and to add to existing positions in the portfolio. NVIDIA is facing multiple headwinds. Data center revenue growth is slowing, gaming revenue growth is declining, and the United States has issued new export controls to China that impact NVDIA’s products. We believe NVDIA’s competitive advantages are intact, and it remains on our MVP list. In the right circumstances we would be delighted to own it in the future.”