Jim Cramer’s 5 Best of Breed Stocks

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 175

Jim Cramer said earlier this year that NVIDIA Corporation (NASDAQ:NVDA) stock may appear expensive but it still continues to go higher and higher with occasional dips. That’s because NVIDIA Corporation (NASDAQ:NVDA) is a best of breed stock, Cramer said. Cramer has been talking about the AI hype companies generate to prop up their stock prices. The fact that he believes NVIDIA Corporation (NASDAQ:NVDA) is a best of breed stock shows the analyst truly believes in the AI story of the semiconductor company.

Insider Monkey’s database of 910 hedge funds shows that 175 hedge funds reported owning stakes in NVIDIA Corporation (NASDAQ:NVDA) as of the end of the second quarter of 2023.

Artisan Developing World Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:

“Our focus on scalable business models has its roots in our economic framework. As potential output moderated in most emerging countries, it became clear to us affordability was not improving and that low penetration was necessary but not sufficient for value creation. We eliminated companies from the portfolio that were struggling to generate revenue significantly in excess of fixed costs, often replacing them with passport companies such as NVIDIA Corporation (NASDAQ:NVDA) and Airbnb that were economically tied to emerging markets. Over a period of time, we have been successful in redefining the emerging markets opportunity set around real per capita GDP increases, growth in the middle class, revenue velocity and demand fulfilment. Combined with changes in the market backdrop that have resulted in privileged competitive positions for companies with financial strength and access to capital, we find our opportunity set expanding anew to include companies that are both based in emerging markets and conducive to value creation.”