5 Best Semiconductor Stocks to Buy Now

3. NVIDIA Corporation (NASDAQ: NVDA) 

Number of Hedge Fund Holders: 80

NVIDIA Corporation (NASDAQ: NVDA) is third on our list of the best semiconductor stocks to buy now. It is an American multinational company that deals in specialized processing units and integrated circuits for visual computing platforms.

In Q1 FY22, NVIDIA Corporation (NASDAQ: NVDA) generated $5.6 billion in revenue, showing 84% year-over-year growth. The EPS for the quarter stood at $3.66, beating the market estimate of $3.28. The NVDA stock has remained consistent for quite some time, soaring by 114% in the past year and 50.4% year to date. Citigroup has ranked the stock as a ‘Buy’ with a price target of $720. 

NVIDIA Corporation (NASDAQ: NVDA) is a global leader in AI computing and its continuous efforts towards expanding the AI business have been acknowledged by investors and analysts. Due to this AI-based performance, Wells Fargo raised the price target on the stock to $875, rating it as ‘Overweight’. At the end of Q1 2021, 80 hedge funds tracked by Insider Monkey have positions in NVIDIA Corporation (NASDAQ: NVDA), worth $6.2 billion. 

Like Skyworks Solutions, Inc. (NASDAQ: SWKS), ASML Holding N.V. (NASDAQ: ASML), and Broadcom Inc. (NASDAQ: AVGO), NVIDIA Corporation (NASDAQ: NVDA) is one of the best semiconductor stocks to buy now. 

Vulcan Value Partners recently released its Q1 2021 investor letter and mentioned NVIDIA Corporation (NASDAQ: NVDA) in it. Here is what the firm has to say: 

“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. At the beginning of the year, the technology selloff negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”