We recently published a list of 10 Best Stocks to Buy According to Billionaire Chris Rokos. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other best stocks to buy according to billionaire Chris Rokos.
Chris Rokos is a highly respected British hedge fund manager who co-founded Brevan Howard Asset Management in 2002 before departing to establish his own firm in 2015, Rokos Capital Management, which now stands as one of the world’s largest macro hedge funds. After graduating from university, Rokos joined UBS in London. Within a year, he joined Goldman Sachs, where he spent three years, first in derivative structuring, then swap market making, and finally proprietary trading. Later on, he would join the budding Brevan Howard Asset Management, becoming one of the firm’s most successful traders, delivering almost $4 billion in profits for the fund during his time there. He later brought this expertise over to his own fund, with Rokos Capital specializing in global macroeconomic strategies, utilizing the billionaire’s skill in trading interest rates and currencies.
Rokos Capital Management’s 13F assets had risen to more than $6 billion by the end of the fourth quarter of 2024, placing it among Europe’s largest hedge funds. While it seems contradictory, the hedge fund’s main selling point might be the volatility of its returns. The firm went through a 44% rise in 2020, which was followed by a 26% decline in 2021. Later in 2022, when the S&P 500 fell more than 18%, the hedge fund enjoyed its best year on record, rising 51%.
According to Bloomberg, Chris Rokos’ hedge fund climbed 4.5% in the first two weeks of April as bond rates rose after President Trump’s announcement of punitive tariffs aimed at reshaping global trade. These gains increased Rokos’ returns this year to 8%. Trump’s April 2 tariff announcement shook global markets, with uncertainty spreading even to Treasuries, which are typically seen as a safe haven. A variety of explanations have been proposed as to what triggered the turbulence, including foreign governments dumping US debt and hedge funds unwinding highly leveraged deals. That said, this isn’t the first time Rokos has benefited from Trump’s presidency. The billionaire made almost $1 billion in profit in a single day in November, one of his largest trading sessions since establishing his firm in 2015, as Trump’s election triumph spurred a global spike in asset prices.
Our Methodology
For this list, we picked stocks from Rokos Capital Management’s 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among other hedge funds.
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).
NVIDIA Corporation (NASDAQ:NVDA)
Rokos Capital Management’s Stake as of Q4 2024: $291.36 million
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA), a global pioneer in graphics processing and networking, uses its GPUs to dominate the gaming and AI businesses, leading to its more than trillion-dollar value.
On April 17, Stifel analysts maintained their Buy rating and $180 price target on NVIDIA Corporation (NASDAQ:NVDA), in-line with the broader Wall Street consensus, which remained highly favorable on the semiconductor giant. The confirmation came after NVIDIA announced that the US government has imposed new export controls requiring an indefinite license for exporting H20 processors to China, including Hong Kong, Macau, and D5 countries, as well as companies with headquarters or parent companies in those regions. Due to these limits, NVIDIA expects to incur a significant $5.5 billion inventory charge.
NVIDIA Corporation (NASDAQ:NVDA) reported a record full-year revenue of $130.5 billion for fiscal 2025, a 114% increase over the previous year. Non-GAAP diluted EPS was $2.99, up 130% from a year before. Fiscal Q4 2025 was another record quarter for the corporation, with revenues of $39.3 billion, up 12% sequentially and 78% year-over-year.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. During the quarter, shares detracted from performance due to several factors. In January 2025, investor concerns grew regarding the emergence of advanced AI models from China, reportedly developed at lower costs and with reduced computing requirements, raising doubts about Nvidia’s market dominance. Additionally, U.S. President Donald Trump’s announcement of new tariffs targeting industries increased worries about higher operational costs. Despite these headwinds, Nvidia reported robust fiscal fourth-quarter results, highlighted by significant revenue growth driven by its data center segment. On the earnings call, CEO Jensen Huang emphasized the increasing computational requirements of future AI models, noting, “The more computation, the more the model thinks, the smarter the answer,” and adding that future reasoning models could demand substantially more compute resources. We believe Nvidia’s leadership in scaling AI infrastructure—including advancements in inference and reasoning during inference—continues to drive adoption among enterprises and startups, ensuring sustained demand for its high performance chips and software solutions. As older-generation chips are repurposed and new clusters deployed, we see Nvidia as well-positioned to capitalize on rising computational needs across AI applications.”
Overall, NVDA ranks 1st on our list of stocks to buy according to billionaire Chris Rokos. While we acknowledge the potential for NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.