8 Best Machine Learning Stocks to Buy According to Hedge Funds

5. NVIDIA Corp. (NASDAQ:NVDA)

Number of Hedge Fund Holders: 193

NVIDIA Corp. (NASDAQ:NVDA) is a technology company that designs and manufactures graphics processing units (GPUs) for the gaming and professional markets. It also develops AI platforms, high-performance computing solutions, and self-driving car technologies, and powers industries like gaming, data centers, and automotive.

In Q3 2024, the company reported a record revenue of $35.1 billion, which marked a 94% year-over-year increase. The data center segment alone surged 112% to $30.8 billion. Its GPU revenue has surged 67% annually over the past three years, driven by the demand for computing power due to AI and ML advancements. The company holds a dominant 90% market share as a supplier of computing power.

Bank of America recently highlighted NVIDIA Corp.’s (NASDAQ:NVDA) popularity among both institutional and retail investors. It maintains a $190 price target, which suggests a 27% upside. The release of Blackwell GPUs, with 12 months of orders already secured, is a key driver of this optimism. At CES 2025, the company also unveiled Project DIGITS, which is a personal AI supercomputer powered by the new GB10 Grace Blackwell Superchip.

This compact system delivers a petaflop of AI performance using a standard electrical outlet. It enables researchers, data scientists, and students to develop and run large AI models locally. Project DIGITS features 128GB of memory and up to 4TB of storage, which allows users to handle demanding AI workloads.

Manole Capital Management highlighted that NVIDIA Corporation (NASDAQ:NVDA) more than tripled in value over the past year, driven by strong AI-related demand and continued revenue growth that exceeds market expectations. It stated the following in its Q3 2024 investor letter:

“As of this publication, Nvidia is up roughly 150% year-to-date. NVIDIA Corporation (NASDAQ:NVDA) was the largest gainer in the S&P 500 last year and has more than tripled in value over the last year. It hit an eye-opening market capitalization of $3 trillion in June, less than four months after it eclipsed the $2 trillion mark. Enthusiasm for everything AI-related, especially for the primary chip maker whose products are essential to powering AI technology, continues to fuel the market. Last quarter, and for the fifth consecutive quarter, Nvidia reported sales and profits that blew past Wall Street expectations. The stock rose +37% in the second quarter alone.”