5 Fastest Growing AI Stocks To Buy

2. NVIDIA Corporation (NASDAQ:NVDA)

1-year stock price growth as of August 29: 215.39%

Number of Hedge Fund Holders: 175

NVIDIA Corporation (NASDAQ:NVDA) has had an amazing year so far as its stock has gone up by 215.39% in the last twelve months and 240.79% year-to-date (YTD) as of the August 29 market close. 

Hedge funds were also quite bullish on NVIDIA Corporation (NASDAQ:NVDA)’s stock in the second quarter. According to the Insider Monkey database, 175 hedge funds held a stake in the company in the second quarter, compared to 132 in Q1. The total hedge fund investments increased from $12.3 billion in the first quarter to nearly $26 billion in Q2.

Rajiv Jain’s GQG Partners increased its stake in NVIDIA Corporation (NASDAQ:NVDA) by 70% to 13.938 million shares worth $5.896 billion and was the most significant stakeholder in the second quarter. NVIDIA Corporation (NASDAQ:NVDA)’s third largest hedge fund holder in Q2 was D E Shaw which increased its stake in the company by 232% to 4.3 million shares worth $1.82 billion.

Mairs & Power made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2023 investor letter:

“Regarding stock selection in the first half, NVIDIA Corporation (NASDAQ:NVDA) was a massive outperformer, up 189.54%. Amazon and Microsoft were also positive contributors, up 55.19% and 42.66%, respectively. All three stocks benefited from a renewed interest in growth stocks by investors in the first half of the year. Nvidia is the leading provider of processors used for artificial intelligence (AI) computation for both learning and inferencing, and its stock rallied significantly on a massive earnings report in the first quarter as cloud data center companies invested heavily in AI.”