1. SPDR S&P Semiconductor ETF (NYSE:XSD)
5-Year Performance as of September 26: 150.36%
The SPDR S&P Semiconductor ETF (NYSE:XSD) helps diversify investors’ stock portfolios. It aims to reflect the investment performance of the S&P Semiconductor Select Industry Index. It was launched on January 31, 2006, and as of September 26, 2023, it manages assets valued at $1.34 billion, along with a portfolio of 39 stocks. The expense ratio for this ETF stands at 0.35%.
NVIDIA Corporation (NASDAQ:NVDA) is one of the largest holdings of the SPDR S&P Semiconductor ETF (NYSE:XSD). NVIDIA Corporation (NASDAQ:NVDA) offers graphic, computing, and networking solutions in the United States, Taiwan, China, and internationally. Their products serve different sectors, including gaming, professional visualization, data centers, and automotive.
According to Insider Monkey’s second quarter database, 175 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA). The number saw a significant increase from the preceding quarter when 132 funds had invested in the stock. Rajiv Jain’s GQG Partners held a significant position in the company, with 13.94 million shares valued at $5.9 billion.
RiverPark Large Growth Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2023 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA): NVDA shares were our next top contributor in reaction to blowout 1Q results and 2Q guidance. The company reported revenue of $7.2 billion and EPS of $1.09, 10% and 18% ahead of expectations. Revenue guidance for 2Q of $11 billion was 53% above expectations. The artificial intelligence arms race kicked-off by generative AI applications ChatGPT and Alphabet’s Bard 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 1Q’s strong 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.”
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