In this article, we discuss the 5 best stocks that will benefit from Biden’s $6 trillion plan. If you want to read our detailed analysis of these companies, go directly to the 10 Best Stocks That Will Benefit from Biden’s $6 Trillion Plan.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at the stocks that will benefit from Biden’s huge spending plan.
5. NVIDIA Corporation (NASDAQ: NVDA)
Number of Hedge Fund Holders: 80
NVIDIA Corporation (NASDAQ: NVDA) is a California-based technology company that makes and sells visual computing hardware. It was founded in 1993 and is ranked fifth on our list of 10 best stocks that will benefit from Biden’s $6 trillion plan. The company’s shares have offered investors returns exceeding 97% in the past twelve months. The $6 trillion plan has put an emphasis on supporting American manufacturers, and NVIDIA, as one of the leading computer hardware brands in the world, looks set to benefit from this.
On June 1, NVIDIA Corporation (NASDAQ: NVDA) announced the launch of two new gaming graphics processing systems, named the GeForce RTX 3080 Ti and GeForce 3070 Ti, which are significantly faster than the older models.
At the end of the first quarter of 2021, 80 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in NVIDIA Corporation (NASDAQ: NVDA), down from 88 the preceding quarter worth $8.6 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ: NVDA) was one of them. Here is what the fund said:
“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. The technology selloff at the beginning of the year 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.”
