5 Crypto Stocks with Biggest Upside

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 175

Even though NVIDIA Corporation (NASDAQ:NVDA)’s biggest growth catalyst now is generative AI applications as the company has an upper hand when it comes to making chips to power AI software, crypto mining remains an important catalyst for the stock. Whenever there’s a boom in crypto mining, NVIDIA Corporation (NASDAQ:NVDA) will see a jump in chips sales as the company’s systems are widely used for crypto mining all over the world.

As of the end of the second quarter of 2023, 175 hedge funds out of the 910 hedge funds tracked by Insider Monkey reported having stakes in NVIDIA Corporation (NASDAQ:NVDA). The biggest stakeholder of NVIDIA Corporation (NASDAQ:NVDA) was Rajiv Jain’s GQG Partners which owns a $5.9 billion stake in the company.

RiverPark Large Growth Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA): NVDA shares were our next top contributor in reaction to blowout 1Q results and 2Q guidance. The company reported revenue of $7.2 billion and EPS of $1.09, 10% and 18% ahead of expectations. Revenue guidance for 2Q of $11 billion was 53% above expectations. The artificial intelligence arms race kicked-off by generative AI applications ChatGPT and Alphabet’s Bard has generated tremendous demand for Nvidia’s next generation graphic processors.

NVDA is the leading designer of graphics processing units (GPU’s) required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming-focused chip vendor to one of the largest semiconductor/software vendors in the world. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. Following 1Q’s strong results, Jensen Huang, founder and CEO of NVIDIA stated in the company’s press release, “[a] trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”

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