5) NVIDIA Corporation (NASDAQ:NVDA)
Short % of Float (as of September 30): 1.07%
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) offers graphics and compute and networking solutions.
Marker experts opine that NVIDIA Corporation (NASDAQ:NVDA) continues to dominate the AI chip market space, capitalizing on its robust position in graphics processing units (GPUs) in a bid to capitalize on the growing demand for AI infrastructure. The healthy demand for the company’s Hopper GPU computing platform, together with growth in InfiniBand and Ethernet for AI revenue, should continue to fuel its financial performance over the near term.
NVIDIA Corporation (NASDAQ:NVDA)’s CUDA software platform and system software capabilities are expected to act as primary differentiators. The company continues to focus on expanding its presence in enterprise and edge computing markets. Its AI Foundry and NIMs (NVIDIA Inference Microservices) offerings target simplifying AI rollouts for enterprises, opening up new revenue streams as and when businesses adopt AI technologies.
Despite the competitive pressures, NVIDIA Corporation (NASDAQ:NVDA)’s technological lead and ecosystem advantages should help it maintain market leadership over the next few years. Analysts at Rosenblatt Securities reiterated a “Buy” rating on the shares of the company, issuing a $200.00 target price on 29th August.
Vltava Fund, an investment management company, recently released its Q3 2024 investor letter. Here is what the fund said:
“Over the summer, we devoted a lot of time to studying the AI-related investment wave. This spans a wide range of sectors and our view could be very briefly summarised as follows: The first-tier beneficiaries are primarily companies in the semiconductor sector, NVIDIA Corporation (NASDAQ:NVDA) perhaps the most. That company is benefiting from the huge increase in investment by large technology companies to build enormous data centres. We know who NVIDIA’s customers are. They are companies like Meta, Alphabet, Amazon, and Microsoft. They are investing hundreds of billions of dollars into their AI capabilities. What is not entirely clear, however, is who are and will be the customers of NVIDIA’s customers, and, more importantly, when, and if, they will be able to come up with such huge demand for AI services that the profits from AI will justify and pay for the enormous investments all these companies have been making. The further we move away from the starting point that NVIDIA represents in our more broadly-reaching estimates, the less reliable those estimates are. So far, we know just one thing for sure, and that is that investments in AI capabilities are ongoing and they are huge. They are not only bringing large demand to chipmakers and the semiconductor sector but to some other sectors as well. Indeed, building AI clusters also requires the construction of new semiconductor factories, new energy sources, and all the associated infrastructure. The numbers under consideration are incredibly high. It is possible that over the next decade the construction of AI centres will necessitate a 20% increase in US energy consumption. The investment required will be measured not in the hundreds of billions of dollars, but in an order of magnitude higher. Maybe two orders of magnitude.”
