5 Best Video Game Stocks to Buy Now

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 106

NVIDIA Corporation (NASDAQ:NVDA) is a diversified technology company that manufactures and sells several products like computer hardware/software, semiconductors, chipsets, TV accessories, and GPUs for gaming. The company’s gaming segment is one of its largest divisions which brought in almost 30% of the company’s revenue in Q4 despite the segment declining 46% YoY.

In its Q4 press release, NVIDIA Corporation (NASDAQ:NVDA) announced a 10-year partnership with Microsoft Corporation (NASDAQ:MSFT) to bring its Xbox and PC games to its cloud gaming service, GeForce NOW™. In addition, the company announced the launch of its new GPU, GeForce RTX 4070 Ti on the same day.

NVIDIA Corporation (NASDAQ:NVDA) is expected to announce its Q1 2023 results on May 24. In the previous quarter, the company provided revenue guidance of $6.50 billion, plus or minus 2%,, and net income guidance of approximately $50 million. Furthermore, NVIDIA Corporation (NASDAQ:NVDA) expects its non-GAAP gross margins at 66.5%, plus or minus 50 bps.

Aristotle Atlantic Partners made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) contributed to outperformance, as the company announced better-than-expected fourth quarter earnings driven by a strong rebound in Gaming and an improving outlook for the Datacenter business due to the acceleration of Graphics Processing Unit (GPU) driven Artifical Intelligence (AI) deployment. The company also hosted its Global Technology Conference (GTC) in March where it further highlighted its leading technology being used to develop AI Large Language Models (LLM). The company announced new partnerships with hyperscalers for its AI cloud-based service while also releasing new software and hardware offerings that will support GPU-driven AI growth. Nvidia continues to see a growing addressable market for its products and services as AI uses become more prevalent.”

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