1. NVIDIA Corp. (NASDAQ:NVDA)
Volume: 271.009 million
Average Volume (3-Month): 326.28 million
Number of Hedge Fund Holders: 179
NVIDIA Corp. (NASDAQ:NVDA) is a leading technology company known for its high-performance GPUs, making it a major player in the gaming, artificial intelligence, and data center markets. Its GPUs are widely used for demanding applications such as gaming, machine learning, and scientific computing.
Chinese regulators are discouraging businesses from purchasing NVIDIA chips, according to Bloomberg reports. While the US government restricts the sale of advanced chips to Chinese entities, some models, like the H20, are permitted for export. NVIDIA generates approximately 12% of its revenue from low-end chips and software sold to Chinese companies.
The company still experienced significant growth in FQ2 2025, with revenue surging 122.40% compared to the previous year. The data center segment drove this growth, with revenue increasing 54% due to strong demand for NVIDIA Hopper, GPU computing, and networking platforms. Cloud service providers accounted for approximately 45% of data center revenue. Partnerships with healthcare institutions and rising demand for AI-powered diagnostic solutions contributed to this impressive financial performance.
On September 25, NetApp unveiled its new AI-powered data solution, leveraging NVIDIA technology, which enhances NetApp’s unified storage operating system, benefiting thousands of enterprises that rely on NetApp for their data infrastructure.
Elon Musk’s AI startup, xAI, has launched Colossal, the world’s most powerful AI training system. Powered by 100,000 NVIDIA H100 GPUs, Colossal is expected to expand further with the integration of H200 GPUs and potentially Blackwell chips. While the company faces challenges in product launches and GPU pricing, its focus on AI monetization and sustainability initiatives positions it for long-term success.
Columbia Contrarian Core Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) – Following the release of first-quarter earnings in May featuring record revenue growth of 262% year over year, NVIDIA continued its upward march. On June 10, shares of the company began trading on a split-adjusted basis following a 10-for-1 forward stock split, making stock ownership more accessible to employees and investors alike. Just one week later, the company officially surpassed Microsoft in market cap to become the most valuable publicly traded company (although it would relinquish the title not long after). While other companies have also stood to benefit from the artificial intelligence (AI) trend this year, NVIDIA stands out as the unquestionable leader in the space and that is unlikely to be challenged for many years ahead. NVIDIA continues to see extremely strong levels of demand and the recent introduction of the Blackwell system looks to be an exciting next phase of growth for the stock.”
While we acknowledge the growth potential of NVIDIA Corp. (NASDAQ:NVDA), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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