4. Nvidia Corp (NASDAQ:NVDA)
Billionaire Israel Englander’s Stake Value: $1,213,332,896
Nvidia Corp (NASDAQ:NVDA) is getting several bullish calls from the Wall Street lately. Bank of America recently added Nvidia Corp (NASDAQ:NVDA) shares to its US 1 List. The list includes BofA’s best investment ideas consisting of buy-rated stocks trading in the US. Nvidia Corp’s (NASDAQ:NVDA) latest product announcements and its plans revealed at Computex show that the company has much more in its arsenal to power its growth engine. Analysts believe Nvidia Corp’s (NASDAQ:NVDA) shift to new AI architecture known as Rubin (R100) and its powerful H100 and Blackwell chips easily beat competitors.
Nvidia Corp (NASDAQ:NVDA) will start shipping H200 in the second half of this year. At its GTC conference Nvidia Corp (NASDAQ:NVDA) revealed three accelerators – B200, GB200 and GB200 NVL72. All of these products provide growth catalysts for Nvidia Corp (NASDAQ:NVDA) shares and justify its P/E multiple of 71, given the company’s growth expectation of over 100% this year and 32% next year. Based on 2026 EPS estimate set by Wall Street, Nvidia Corp (NASDAQ:NVDA) is trading at a forward P/E multiple of 35.74, which makes the stock’s valuation attractive given the growth catalysts it has.
RiverPark Large Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its first quarter 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA): NVDA shares were our top contributor in the quarter following blowout 4Q results and 1Q guidance driven by strong data center sales. The company reported quarterly revenue of $22.1 billion, up 265% year-over-year, and EPS in the quarter of $5.16, up 487% year-over-year and 12% ahead of expectations. Revenue guidance for 1Q of $24 billion was 8% above very high expectations. The artificial intelligence arms race kicked-off by ChatGPT and Alphabet’s Bard, among others, has generated tremendous demand for Nvidia’s next generation graphic processors.
NVDA is the leading designer of graphics processing units (GPU’s) required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming-focused chip vendor to one of the largest semiconductor/software vendors in the world. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. Following recent results, Jensen Huang, founder and CEO of NVIDIA stated in the company’s press release, “a trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”
