3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 223
Millennium Management’s Equity Stake: $1.34 Billion
NVIDIA Corporation (NASDAQ:NVDA) posted remarkable financial results for the quarter ending October 27, 2024, with revenue surging 94% year over year to $35.08 billion and earnings per share increasing 103% to $0.81. This growth underscores the company’s strong leadership in AI, gaming, and data center technologies. Additionally, the company declared a quarterly cash dividend of $0.01 per share, reflecting its commitment to shareholder value while sustaining its rapid expansion. These results reinforce NVIDIA’s dominant position in the evolving semiconductor industry.
NVIDIA Corporation (NASDAQ:NVDA) recently recovered from a market dip triggered by concerns over competition from Chinese AI company DeepSeek, with its stock rebounding after a temporary 21% decline. Investors are now focused on Nvidia’s upcoming fiscal Q4 2025 earnings report expected on February 26, with analysts estimating revenue of $38.13 billion and earnings per share (EPS) of $0.85, representing year-over-year growth of 72.5% and 63.5% respectively. The company’s management has projected Q4 revenue of $37.5 billion, plus or minus 2%. Key factors supporting Nvidia’s strong performance include high demand for its Blackwell GPU chips and continued AI infrastructure investments from major clients like Amazon, Microsoft, Alphabet, and Meta Platforms.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 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. Shares contributed to performance during the quarter, driven by strong demand for its data center products, especially the Hopper H200 chips, which generated double-digit billions in revenue, marking the fastest product ramp in the company’s history. Management provided fiscal fourth-quarter revenue guidance above analyst estimates, along with resilient operating margins supported by robust demand and limited competition. In our view, Nvidia’s leadership in scaling AI infrastructure, including advancements in inference and test-time scaling (i.e., reasoning during inference), is driving adoption among enterprises and startups, providing continued demand for its high-performance chips and software solutions. As older-generation chips are repurposed for inference and new clusters are deployed, we believe Nvidia is well-positioned to capitalize on growing compute needs across AI applications.”
