1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 102
NVIDIA Corporation (NASDAQ:NVDA) is a California-based company that specializes in graphics, semiconductors, and networking solutions in the United States, Taiwan, China, and internationally. In the second quarter of 2022, Cathie Wood’s ARK Investment Management strengthened its hold significantly in NVIDIA Corporation (NASDAQ:NVDA). As of the end of Q1, Cathie Wood’s fund had owned just 653 shares of NVIDIA. However, at the end of the second quarter, the fund reported owning 675,886 shares of the company worth $126.20 million, representing 0.74% of the total portfolio.
On July 20, Deutsche Bank analyst Ross Seymore reiterated a Hold rating on NVIDIA Corporation (NASDAQ:NVDA) and lowered the firm’s price target on the shares to $175 from $190. The current “purgatory” stage of the semiconductor cycle continues heading into the Q2 earnings season, the analyst told investors. The analyst is now “more actively factoring in accelerating macro/sector headwinds” into his 2023 estimates, and he reduced revenue, earnings, and price targets on average by 4%, 10%, and 14%.
Among the hedge funds tracked by Insider Monkey, 102 funds were bullish on NVIDIA Corporation (NASDAQ:NVDA) at the end of March, compared to 110 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is a significant position holder in the company, with 7.3 million shares worth about $2 billion.
Here is what RiverPark Long/Short Opportunity Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), 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, dominating the core secular growth markets of gaming, data centers and professional visualization. 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. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
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