3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 186
NVIDIA Corporation (NASDAQ:NVDA) is an American multinational technology company incorporated in Delaware and headquartered in Santa Clara, California. Renowned for its expertise in developing integrated circuits, the company’s products are used in various devices, including electronic game consoles and personal computers (PCs). The NVIDIA EGX platform notably extends the power of accelerated computing from data centers to edge locations, providing a range of optimized hardware components along with user-friendly deployment, applications, and management software.
According to Insider Monkey’s first-quarter database, 186 hedge funds held stakes in NVIDIA Corporation (NASDAQ:NVDA), up from 173 in the previous quarter. One of the prominent stakeholders is Rajiv Jain’s GQG Partners, with nearly 13.36 million shares valued at $12.07 billion.
NVIDIA Corporation (NASDAQ:NVDA) recently shook the market again as one of the world’s largest tech ETFs is on the brink of a significant shift due to the chipmaker surpassing Apple Inc. in market size. Due to diversification rules, the $67 billion Technology Select Sector SPDR Fund has held significantly fewer NVDA shares for months, even as the AI giant’s value has soared. Currently, NVIDIA Corporation (NASDAQ:NVDA) accounts for roughly 6% of the fund’s assets, compared to 21% in the S&P 500 Information Technology Index, causing XLK to underperform significantly this year. With the company’s recent surge past Apple in value, its representation in XLK could see a substantial increase during the ETF’s quarterly rebalance at the end of this month.
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.”
