5 Stocks Dumb Money’s Steve Cohen Is Betting On Now

1. NVIDIA Corporation (NASDAQ:NVDA)

Value of Point72 Asset Management’s 13F Position: $695 million

Number of Hedge Fund Shareholders: 178

NVIDIA Corporation (NASDAQ:NVDA) stands to benefit the most from AI demand because its chips are best suited for powering AI products in data centres and other areas. ChatGPT is also powered by NVIDIA chips. With a $695 million stake, NVIDIA Corporation (NASDAQ:NVDA) is Point72 Asset Management’s largest holding. The company earned $6 billion in profits from the AI boom in the June quarter. Its revenue of $13.5 billion more than doubled compared to the past year’s period due to robust demand for AI. Nvidia also expects its revenue to exceed $16 billion in the September quarter, topping analyst consensus of $12.59 billion.  

In the second quarter investor letter, Harding Loevner, an asset management company, explained why NVIDIA stock soared sharply. Here is what the firm stated

NVIDIA Corporation (NASDAQ:NVDA) has been the biggest beneficiary this year in terms of its stock run and projected revenue gains. More companies- including, perhaps, some not yet in existence-will certainly join the ranks over time.

In the meantime, NVIDIA has emerged as the unrivaled global leader in providing the technologies at the center of the Al arms race. NVIDIA’s competitive advantage is the result of investments that began two decades ago, when it recognized an early opportunity to repurpose its video-game graphics chips for the heavy-load computing done in scientific research. This led management to expand the GPU business. It also spent years and significant resources developing a free software platform that’s exclusive to its chips called CUDA that allows developers to easily program its GPUs for a variety of computationally intensive applications. Researchers then began using both NVIDIA’s chips and CUDA to train the human-brain-inspired neural networks that power Al models.

Now, due to an explosion of demand related to generative Al and LLMs from across its customer base, NVIDIA projects that data-center revenue for its fiscal second quarter ending in July will surge to US$11 billion. Not only is that more than double last quarter’s total, but the forecast also shattered the average analyst estimate that called for about US$7 billion. Taking advantage of the stock’s meteoric rise, we reduced our holding (it has risen tenfold since we first purchased in 2018)…” (Click here to read the full text)

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