We recently published a list of 12 Best QQQ Stocks to Invest in Now. In this article, we are going to take a look at where NVIDIA Corp. (NASDAQ:NVDA) stands against other best QQQ stocks to invest in now.
Lunch’ to analyze the market’s reaction to the tariff announcements. McCartney referred to the situation as tariff policy ping pong, and highlighted how it adds to the uncertainty in Washington during a time when weak data is emerging from other areas. She explained that this has created a perfect storm of challenges, which includes seasonal pressures that make this time of year difficult. Retail buyers have stepped away from the market, and there is uncertainty for individuals regarding tax policy and for corporations concerning tariffs and taxes. The withdrawal of overleveraged bids has contributed to increased market volatility, which makes it harder for major tech companies to maintain their leadership roles.
The conversation then turned to the influence of key sectors, particularly the MAG7. McCartney noted that when these sectors underperform, they can generate downside pressure on the market, which contrasts with the desire for a broader market trade. She pointed out that while these tech stocks are down year-to-date, the overall market remains materially up and is annualizing at a high single-digit rate. She expressed optimism about market breadth and suggested that this could present a buying opportunity for investors to re-enter big tech.
Tech stocks face short-term volatility due to market uncertainty, but their long-term potential remains intact.
Methodology
We sifted through the Invesco QQQ exchange-traded fund (ETF) holdings to find 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corp. (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corp. (NASDAQ:NVDA) is a computing infrastructure company that provides graphics, compute, and networking solutions globally. Through its Compute & Networking and Graphics segments, it delivers products and services like GPUs, data center platforms, AI software, and autonomous driving solutions.
On February 27, Bernstein analyst Tom O’Malley raised the company’s price target from $175 to $185, while maintaining an Outperform rating. The analyst cited record data center revenues of $35.6 billion in FQ4 2025 as a reason for this sentiment, which was driven by the Blackwell ramp-up. It represented a 93% year-over-year improvement.
Total revenue for FY25 reached $115.2 billion, which more than doubled year-over-year. Blackwell sales alone reached $11 billion in FQ4. Blackwell is designed for AI inference, with 25x higher throughput and 20x lower cost than previous models. Its demand is huge as major cloud providers like Azure and AWS are deploying it. NVIDIA Corp. (NASDAQ:NVDA) expects FQ1 2026 revenue to reach $43 billion. This growth will be driven by both Blackwell and networking, with AI applications expanding rapidly across industries.
NVIDIA Corp. (NASDAQ:NVDA) continues to dominate the AI market. It’s exceeding expectations with strong performance and high demand for its new products. Columbia Threadneedle Global Technology Growth Strategy stated the following in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) continued to outperform the market during the fourth quarter. The technology giant and top position in the fund delivered on sky-high expectations during the quarter and reported quarterly expectations that exceeded expectations. The red-hot company provided forward-looking expectations which were regarded as slightly lackluster as compared to prior quarters that smashed expectations. While the stock did churn a bit in the quarter, the AI giant remains top of mind for investors, especially as the company is on pace to satisfy the ‘staggering’ demand for its new product, Blackwell, which is poised to enter the market over the next year. The company’s position of owning all the major pieces of the evolving AI data center enables it to strengthen its competitive position and to define the technology roadmap for generations to come.”
Overall, NVDA ranks 5th on our list of best QQQ stocks to invest in now. While we acknowledge the growth potential of NVDA, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
