8 Most Profitable Tech Stocks Right Now

3. NVIDIA (NASDAQ:NVDA)  

Number of Hedge Fund Holders: 179  

TTM Net Income: $53.00 Billion  

5-Year Net Income CAGR: 80.81%

NVIDIA (NASDAQ:NVDA) is a global leader in graphics processing units (GPUs) and has been at the forefront of AI, gaming, and data center technology. The company’s GPUs are widely used in gaming, deep learning, and high-performance computing. NVIDIA’s (NASDAQ:NVDA) AI and machine learning solutions have also been adopted across various industries such as healthcare, automotive, and finance. NVIDIA’s (NASDAQ:NVDA) customers include Amazon Web Services, Google Cloud, and Tesla.

NVIDIA (NASDAQ:NVDA) is poised for continued growth and success, driven by its strong position in the data center market and its upcoming Blackwell chip. Blackwell is high in demand from companies such as OpenAI, Microsoft, Meta, and other firms building AI data centers to power products. Blackwell is expected to cost between $30,000 and $40,000 per unit. The Blackwell GPUs are already being released to data centers and industrial customers for artificial intelligence applications and will be available for consumers in 2025.

In an interview with CNBC, CEO Jensen Huang said that “Blackwell is in full production and demand for Blackwell is insane” and that “Everybody wants to have the most and everybody wants to be first”. NVIDIA’s (NASDAQ:NVDA) leadership in the field of accelerated computing and generative AI is also a major driver of its growth prospects. Management has emphasized the importance of these two computing transitions, which are expected to drive long-term sustainability in capital expenditure spending.

Additionally, NVIDIA (NASDAQ:NVDA) has growing opportunities in the enterprise AI wave, automotive, and healthcare segments are expected to drive further growth, as the company’s products and solutions become increasingly adopted in these industries.

In Q2, global spending on cloud infrastructure grew 19% year over year to $78.2 billion, according to Canalys. Hyperscalers are expected to spend about $160 billion in 2024 on AI infrastructure. Analysts forecast the company’s earnings will increase by 81.88% this year and have a consensus Buy rating at a target price of $148.23, which implies a 9.48% increase from its current levels. With its strong position in the data center market and its growing opportunities in new industries, NVIDIA (NASDAQ:NVDA) is well-positioned to capitalize on these trends and drive further growth.