Ken Fisher’s Top 10 Growth Stock Picks with 30+% Revenue Growth

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Investors  in Q1 2024: 186

3 Yr Revenue Growth: 54%

Fisher Investments’ Q1 2024 Stake: $8.2 billion

NVIDIA Corporation (NASDAQ:NVDA) is Wall Street’s AI darling, and the love is also shown here in this list as it is Ken Fisher’s second biggest growth stock pick. The firm’s rise to fame is built on its strong competitive advantage through its GPU products and CUDA software. Combined, these two are among the best performing products in the world, and given industry expectations for AI related upgrades, they offer NVIDIA Corporation (NASDAQ:NVDA) a wide moat over peers. At the same time, these are also its biggest risks since businesses like to have a diverse supply chain, and rising geopolitical tensions between the US and China have led to, and might lead to more, significant export embargoes. The former was evident in July 2024 when a media report claimed that OpenAI and Sam Altman were eager to develop their own products to reduce dependence on NVIDIA, with Taiwan’s TSMC also purportedly showing willingness to allocate chip capacity for them.

Baron Funds mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2024 investor letter. Here is what the firm said:

“We are early on the adoption S-curve – most companies are still in the proof of concept stage while very few are ready for production today. Hurdles in implementing AI include data prep, model adaptation and fine-tuning, and embedding of AI into existing workflows. There is a lot of innovation taking place to reducing these hurdles – from tools and infrastructure that help companies build and run AI models more easily, to third-party AI models exposed via Application Programming Interfaces (APIs) that enable companies to use them without building their own models from scratch. NVIDIA’s ecosystem across developers, system integrators, cloud providers and independent software vendors, and internal software innovation are lowering these hurdles as well. For example, one of the most interesting announcements at the GTC conference were NVIDIA Inference Microservices – or NIMs, which are APIs to easily access open-source models (NVIDIA already has dozens of models available) without the need to worry about model optimizations, security, patching, or sending data to third parties. NIMs could ease AI adoption for enterprises while also driving incremental monetization for NVIDIA, priced at $4,500/GPU or at $1/GPU hour if used on the cloud, and increase the stickiness of NVIDIA’s platform.”