6. NVIDIA Corporation (NASDAQ:NVDA)
Market Cap: $3.254 Trillion
5-Year Net Income CAGR: 80.81%
TTM Net Income: $53.009 billion
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) focuses on graphics, computing, and networking solutions. It gained prominence with its breakthrough graphics processing units (GPUs), known for their ability to handle multiple tasks at once. While initially a significant player in the gaming industry, the company has since expanded into professional visualization, data centers, and automotive sectors. It is one of the most profitable blue chip stock.
It is one of the best stocks to buy and hold for the next decade. Its AI networking platform, Spectrum X, is projected to generate billions in revenue within a year. The company recently secured a deal with Salesforce, improving AI and data services for businesses. Additionally, the company launched Aerial, an AI tool designed to optimize wireless networks for next-gen technologies like 5G and autonomous systems.
NVIDIA (NASDAQ:NVDA) will announce its earnings in November and expects $32.5 billion in revenue for the fiscal third quarter of 2025, driven by its Hopper architecture and Blackwell chips. The company’s CEO Jensen Huang told CNBC that demand for the company’s upcoming AI chip is “insane” with companies like OpenAI, Microsoft, and Meta eager to obtain it.
On October 10, The Fly reported that after a three-day roadshow with the CEO and CFO of the company, Morgan Stanley revealed that Nvidia’s (NASDAQ:NVDA) Blackwell NVL36/72 systems are in high demand and are sold out for the next year. The firm highlighted the long-term potential of accelerated computing and noted that the AI investment cycle is still in its early stages.
Morgan Stanley maintained its Overweight rating on the company and set a $150 price target as the firm referenced strong market conditions and continued momentum for the company.
Ithaka Group’s Ithaka US Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“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.”
