2. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 193
Jim Cramer in a recent program on CNBC talked about the massive selloff that rocked NVIDIA Corp (NASDAQ:NVDA) shares after the launch of DeepSeek. Cramer was frank about the confusion and concerns around NVIDIA Corp (NASDAQ:NVDA) stock and said a lot needs to be known before making any claims about the Nvidia story. Cramer was worried about why NVIDIA Corp (NASDAQ:NVDA) did not emphasize its software focus and its chip demand in its statement after the DeepSeek launch.
“It’s part of the confusion and the real quandary is why did NVIDIA Corp (NASDAQ:NVDA) say that it’s become much more of a software company and that you need the hardware to run their software. It also would have been good to find out how many chips DeepSeek is really using. But it isn’t. Think about it—if it was a lot, right, then our government would simply ban all exports to China. What a high-risk situation. If you’re NVIDIA Corp (NASDAQ:NVDA), you’re really in a jam here.
See, if DeepSeek really didn’t need many chips to make its AI platform work, that could be very negative for the NVIDIA Corp (NASDAQ:NVDA) story because then you don’t have to order as many chips. But if it turns out that DeepSeek had hundreds of thousands of chips like the American hyperscalers, then you’d have to believe the new president would make it much harder for Chinese companies to buy anything.”
Infuse Asset Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“We do still own some NVIDIA Corporation (NASDAQ:NVDA) as the forward multiple isn’t egregious and it powers over 90% of AI workloads. This company is only becoming increasingly important though the hyperscalers are actively trying to save money through their own ASIC programs. The moat CUDA provides has been underestimated time and time again. While I don’t think Nvidia has quite the upside as some of the other companies in the portfolio, it has a product that the best companies in the world literally can’t get enough of.”
