Billionaire Louis Bacon’s 5 Stock Picks with Huge Upside Potential

1. NVIDIA Corporation (NASDAQ:NVDA)

Louis Bacon’s Stake Value: $384.312 million

Average analyst price target: $661.00

Average analyst price target upside: 45.24%

NVIDIA Corporation (NASDAQ:NVDA) is a California-based tech company that is engaged in the production and distribution of graphics processing units, central processing units, and system-on-a-chip units.

Out of the 910 hedge funds tracked by Insider Monkey, 180 funds had investments in NVIDIA Corporation (NASDAQ:NVDA)’s stock in the third quarter, up from 175 in the previous quarter. Rajiv Jain’s GQG Partners was the biggest shareholder of the company, with 14.039 million shares worth over $6.1 billion, representing 14.13% of the fund’s portfolio.

On November 21, NVIDIA Corporation (NASDAQ:NVDA) posted Q3 non-GAAP EPS of $4.02, topping the estimates by $0.63. The revenue increased by 205.6% YoY to $18.12 billion, which beat the estimates by $2.01 billion.

NVIDIA Corporation (NASDAQ:NVDA) was mentioned in O’keefe Stevens Advisory’s third-quarter 2023 investor letter. Here is what it said:

“This quarter, we actively reduced our position in our favorite company, NVIDIA Corporation (NASDAQ:NVDA). Over the past several years, I have consistently noted the concentration of the top 5 holdings in our portfolio, with NVDA comprising 26% of the last quarter’s 40%. The business, management, and outlook are nothing short of excellent. The business has a dominant market share in a rapidly growing market with competition seemingly years behind, though, fighting hard to gain share. Gross margin is expected to exceed 70% in 2024 and expand in 2025, reflecting the premium customers pay for their advanced technology. Revenue growth of 30%+ on a $50B base and a return on equity over 50%. If this isn’t the best business in the world currently, certainly it is in the top 5.

Jensen is the reason we held onto the stock despite our unease about the valuation. Jensen came to the U.S. from Thailand and was sent to a boarding school in rural Kentucky for troubled youth by his aunt and uncle, who mistook it for a prep school. When buying an ownership stake in the business, we must ask ourselves who we partner with. Are they honest? Capable? Aligned?

Honest: Listening to Jensen (while promotional) is like a breadth of fresh air. He tells you how it is. When the business looked like it was headed for failure in 2009, Jensen reduced his salary to $1….” (Click here to read the full text)

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