Light Street Capital Returned 46% in 2023: Top 5 Picks

1. Nvidia Corp (NASDAQ:NVDA)

Light Street Capital’s Equity Stake: $47.20 Million
Number of Hedge Fund Holders: 180

Light Street Capital returned 46% in 2023 as it benefited from its investment in Nvidia Corp (NASDAQ:NVDA), a stock that exploded amid the artificial intelligence boom. The tech giant delivered record-breaking revenues and earnings amid solid product demand to power AI innovations and tools.

After rallying by more than 230% in 2023, Nvidia Corp (NASDAQ:NVDA) continues to hit all-time highs owing to its dominant position in the market for advanced AI chips. Light Street Capital has been buying and selling shares in Nvidia Corp (NASDAQ:NVDA) since Q4 2022. The hedge fund increased its stakes by 9% in Q3 2023 to $47.20 million, accounting for 13.89% of the portfolio.

As of the end of the September quarter, 180 hedge funds tracked by Insider Monkey had stakes in NVIDIA Corp (NASDAQ:NVDA), up from 175 in the preceding quarter.

Here is what Polen Capital said about NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:

“Apple and NVIDIA Corporation (NASDAQ:NVDA) alone drove over 1,100 basis points of the Russell 1000 Growth Index’s 42% return, so not owning them was a meaningful headwind to our relative return in 2023. NVIDIA shares rocketed higher by well over 200% in 2023 although they slightly underperformed our Portfolio and the Russell 1000 Growth in the fourth quarter. Generative AI has been a huge boon for NVIDIA as the use of LLMs like ChatGPT and others requires tremendous processing power that, today, is mostly provided by NVIDIA’s GPUs. All large cloud service providers, AI factories, and many large consumer internet companies are laying the foundation for generative AI by deploying NVIDIA GPUs and other parallel processing chips to be able to do large scale generative AI either for internal use (i.e., Meta) or as a service for others (i.e., AI factories) or both (cloud service providers such as Amazon, Microsoft, and Google)….. (Click here to read full text).”

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