2. NVIDIA Corp. (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
Performance (Year-to-Date) as of September 4: 118.08%
NVIDIA Corp. (NASDAQ:NVDA) is the pioneer of GPU-accelerated computing, specializing in products and platforms for the large, growing markets of gaming, professional visualization, data center, and automotive. In other words, it’s a designer and manufacturer of graphics processing units (GPUs).
GenAI is driving data center growth. Next-gen models need 10-20x more compute and data and that’s where Nvidia comes in with its extremely powerful chips.
In FQ2 2025, there was a 122.40% year-over-year improvement in the company’s revenue. Data center revenue alone was up 54%. Cloud service providers represented roughly 45% of data center revenue. Compute revenue grew more than 2.5 times, and networking revenue grew more than 2 times from the last year.
In August, management approved a buyback of $50 billion in equity shares. Its shares were held by 179 hedge funds. Fisher Asset Management is the biggest shareholder with shares worth $11.54 billion, as of June 30.
The company unveiled Blackwell, a new architecture for AI factories and data centers. It combines multiple GPUs, CPUs, DPUs, and networking components to power next-GenAI. The GB 200 NVL72 system delivers up to 30 times faster inference for LLMs and workloads.
Demand for Blackwell and Hopper is strong, with Blackwell production starting in FQ4. Spectrum-X, a high-performance Ethernet platform, is gaining traction in the market. Sovereign AI opportunities are expanding as countries prioritize AI development.
NVIDIA Corp.’s (NASDAQ:NVDA) future success depends on continued innovation in AI. Market experts are forecasting a shift to robotics for the company’s growth. Management expects AI revenue to reach low-double-digit billions this year.
Aoris International Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“If Information Technology was the dominant sector for the quarter, NVIDIA Corporation (NASDAQ:NVDA), which is the largest supplier of microprocessors used for generative AI applications, was the dominant company. NVIDIA’s share price rose by a third in the quarter and has increased by 255% so far this year. Since the beginning of 2023, its market value has risen by 8.3x, or $4.3 trillion, making NVIDIA the third largest company in the world by this measure.
As a result of the unusually strong stock price performance from NVIDIA and a few other large companies, equity markets have become increasingly concentrated. You can see this in the chart below, which shows that on 30 June, 27% of the market value of the 500 largest US companies was attributable to just five companies, more than twice the average of the last 20 years.
The composition of the Aoris International Fund will always be very different to that of the broader equity market. There will be periods, such as the most recent quarter, where this contributes to our performance lagging that of our benchmark. When it comes to NVIDIA and other AI-centric companies, rapid growth is exciting, but it makes it difficult for us to judge what is normal. Our preference is to own established leading companies where we can make a more confident, evidence-based judgement about their growth and profitability.”
