Columbia Threadneedle Investments, an investment management company released its “Columbia Seligman Global Technology Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Equity markets rose in the third quarter with the large-cap Russell 1000 Index gaining 6.08%, raising its year-to-date return to 21.18%. The fund’s Institutional Class shares returned 1.00% in the quarter, compared to a 1.52% return for the MSCI World Information Technology Index-Net. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.
Columbia Seligman Global Technology Fund highlighted stocks like NVIDIA Corporation (NASDAQ:NVDA), in the third quarter 2024 investor letter. NVIDIA Corporation (NASDAQ:NVDA) offers graphics and compute and networking solutions. The one-month return of NVIDIA Corporation (NASDAQ:NVDA) was -3.07%, and its shares gained 186.32% of their value over the last 52 weeks. On November 26, 2024, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $136.92 per share with a market capitalization of $3.353 trillion.
Columbia Seligman Global Technology Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“The fund held an underweight position in NVIDIA Corporation (NASDAQ:NVDA) relative to the S&P North American Technology Sector, which was a headwind on performance following impressive returns from the company in 2023 and the first two quarters of 2024. NVIDIA’s stock fell during periods of the quarter after the company reported second quarter earnings. While the earnings came in higher than expectations, investors were concerned that the company did not guide earnings high enough, signaling a potential slowdown in AI buildout. NVIDIA’s demand remains strong and the company has forecast orders for upcoming quarters. The question that remains is whether the company can meet the demand for its AI processors and connectivity chips. Our team continues to remain cautious on NVIDIA’s high customer concentration. Microsoft and Meta have driven a significant amount of the company’s revenue, which presents added risk.”
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NVIDIA Corporation (NASDAQ:NVDA) is in 5th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 193 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of the third quarter which was 179 in the previous quarter. NVIDIA Corporation (NASDAQ:NVDA) reported another record quarter in Q3 with $35.1 billion in revenues, representing a 94% year-over-year increase and 17% sequential growth. While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed NVIDIA Corporation (NASDAQ:NVDA) and shared the list of AI news updates investors should not miss. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.