5 Largest Chip Producers In The World

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 110

Market Cap: $665.75 billion

NVIDIA Corporation (NASDAQ:NVDA) deals in the provision of graphic processing units (GPUs) to consumers for high-performance computer usages such as gaming, design and editing. The crypto boom has also led to more people using NVIDIA’s graphic cards to mine cryptocurrencies. The firm’s portfolio of computing products include the Quadro series of video cards for professional graphics, the Tegra series used in cellular phones, and the nForce series for multimedia functions.

As the metaverse hype picks up, NVIDIA Corporation (NASDAQ:NVDA) is the forefront beneficiary of this trend as computers utilize bigger graphic chips to simulate digital worlds in complex detail. The firm is also supplying the main ‘brain’ chip for use by NIO’s new electric vehicle called ET7. The Chinese automaker is expected to release the highly autonomous EV in the first quarter of 2022. NVIDIA Corporation (NASDAQ:NVDA) also unveiled its own CPU called Grace in April, enabling it to directly challenge CPU giants such as Intel and AMD for CPU market share. Amazon uses NVIDIA chips in its Amazon Web Services data centers as well.

JPMorgan analyst Harlan Sur sees NVIDIA Corporation (NASDAQ:NVDA) as “1-2 steps ahead of its competitors.” He reiterated an ‘Overweight’ rating on the company’s shares with a $350 price target on March 23. The analyst noted that with its leading silicon hardware and software platforms, along with a strong ecosystem, Nvidia is well-positioned to enjoy growth from major secular trends in artificial intelligence, high performance computing, gaming, and autonomous vehicles. The firm has also recently announced a next generation Hopper accelerated computing architecture, as well as a next-gen H100 chipset that targets datacenter acceleration.

As of March 25, NVIDIA Corporation (NASDAQ:NVDA) has seen its share price jump 115.69% in the last 12 months, and 27.85% in the last six months. Revenue for the 12-month period ending January 31, 2022 stood at $26.91 billion, jumping 61.4% year-on-year.

Here is what Vulcan Value Partners had to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2021 investor letter:

“NVIDIA Corp. was a material contributor during the quarter. We have discussed NVIDIA at length in previous quarters. Its products 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 now, the Metaverse. The company continues to outperform expectations, growing its revenue and free cash flow significantly throughout 2021, and in turn, its value is compounding quickly.”

You can also take a look at 10 Best Climate Change Stocks to Buy Now and 15 Largest AI Companies in the World.

Follow Insider Monkey on Twitter