5) NVIDIA Corporation (NASDAQ:NVDA)
Number of hedge fund holders: 179
NVIDIA Corporation (NASDAQ:NVDA) is the designer of discrete graphics processing units that enhance the experience on computing platforms. Its chips are used in several end markets, such as high-end PCs for gaming, data centers, and automotive infotainment systems.
NVIDIA Corporation (NASDAQ:NVDA) has been making investments for over a decade in its software capabilities in a unique way which has enabled its hardware to outperform regular silicon. This outperformance was seen because of software optimizations and acceleration libraries as these are regularly updated. GenAI continues to drive data center growth. The next-gen models require 10x-20x more compute and data, and this is where NVIDIA Corporation (NASDAQ:NVDA)’s extremely powerful chips come to the rescue.
Undoubtedly, the company’s strong position related to graphics processing units, and switching costs associated with its proprietary software, CUDA platform, for AI tools should act as critical growth enablers. NVIDIA Corporation (NASDAQ:NVDA)’s GPUs and software platforms should capitalize on the elevated demand for its AI applications, mainly in data centers where high-performance computing remains important. Spectrum-X, which is a high-performance Ethernet platform, has been gaining traction. Also, sovereign AI opportunities are expanding, with more and more countries prioritizing AI development.
For 3Q 2025, NVIDIA Corporation (NASDAQ:NVDA) expects revenue of $32.5 billion, plus or minus 2%. During 1H 2025, the company returned $15.4 billion to shareholders via shares repurchases and cash dividends.
Analysts at JPMorgan Chase & Co. increased their target price on shares of NVIDIA Corporation (NASDAQ:NVDA) from $115.00 to $155.00, giving an “Overweight” rating on 29th August. Ithaka Group, an investment advisory firm, released its second-quarter 2024 investor letter. Here is what the fund said:
“NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including: data center acceleration, artifi cial intelligence (AI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefi ted from tremendous excitement surrounding the further development of generative AI and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future; Second, Nvidia posted another strong beat[1]and-raise quarter, where the company upped its F2Q25 revenue guidance above Street estimates, showcasing its dominant position in the buildout of today’s accelerated computing infrastructure.”
