1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 102
NVIDIA Corporation (NASDAQ:NVDA) was incorporated in 1993 and is headquartered in Santa Clara, California. NVIDIA Corporation (NASDAQ:NVDA) is one of the leading players in the semiconductor industry. On July 7, Samsung reported its Q2 results, posting the highest profit since 2018. NVIDIA Corporation (NASDAQ:NVDA) subsequently gained 4.8%, closing at $158.58 as the leader in the chip space.
Tigress Financial analyst Ivan Feinseth on July 8 maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) but lowered the price target on the shares to $310 from $410. The analyst observed that NVIDIA Corporation (NASDAQ:NVDA)’s leading position in data centers, autonomous technology, and artificial intelligence will continue to result in increasing growth. The reduced price target was due to a rerating of company valuation, noted the analyst, who still sees more than 90% upside from present levels.
According to Insider Monkey’s Q1 data, 102 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA), compared to 110 funds in the prior quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is a prominent shareholder of the company, with 2.5 million shares worth $694.4 million.
Here is what RiverPark Long/Short Opportunity Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), 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, dominating the core secular growth markets of gaming, data centers and professional visualization. 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. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
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