We recently published a list of Top 10 Stocks to Buy According to Balyasny Asset Management. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other top stocks to buy according to Balyasny Asset Management.
Balyasny Asset Management (BAM) is a leading investment management firm headquartered in Chicago, with additional offices in Canada, London, and Asia. The firm is dedicated to delivering consistent, uncorrelated returns across various market conditions. By leveraging advanced research, technology, and a diversified investment approach, BAM seeks to identify and capitalize on opportunities in global financial markets. The firm’s core strategies span equities, fixed income, macroeconomic trends, commodities, and systematic investing, all supported by a robust risk management framework tailored to individual portfolio managers and their teams.
The firm’s Quantitative Research division employs an evidence-based, analytical approach to enhance investment performance. By identifying patterns and inefficiencies, the team supports portfolio managers in making data-driven decisions that lead to sustainable returns. BAM’s Applied AI team further strengthens this effort by integrating artificial intelligence tools into daily operations, improving efficiency, and uncovering insights that might otherwise go unnoticed. This collaboration across strategies enhances idea generation while mitigating risks, ensuring that investment decisions are well-informed and adaptive to evolving market conditions.
Balyasny’s investment strategies are diverse, with a strong emphasis on Equities Long/Short (L/S), one of the largest equity platforms among multi-strategy asset managers. The firm employs over 300 analysts and 70 portfolio managers who conduct fundamental, sector-specific research to identify compelling long and short investment opportunities. Its Fixed Income & Macro division capitalizes on global trends through a mix of directional, relative value, and semi-systematic strategies, supported by a team of more than 140 investment professionals across 40 specialist groups. Additionally, the Commodities division focuses on supply and demand-driven investments, leveraging a sophisticated technology and data platform.
Other key investment approaches include Multi-Asset Arbitrage, which targets opportunities in event-driven and arbitrage strategies such as convertibles and credit, and the Systematic division, which uses proprietary technology and quantitative modeling to generate consistent, risk-adjusted returns. BAM’s forward-looking risk management system plays a crucial role in safeguarding investments, adapting to market changes, and ensuring risk is managed effectively across asset classes. By continuously refining its strategies and leveraging cutting-edge technology, Balyasny Asset Management remains a competitive force in the global investment landscape.
Dmitry Balyasny co-founded Balyasny Asset Management (BAM) in 2001 and serves as its Managing Partner and Chief Investment Officer. Under his leadership, BAM has grown into a globally recognized investment firm with a strong presence in equities long/short investing. He plays an active role in risk management and portfolio strategy while overseeing the firm’s expansion across multiple asset classes. Balyasny began his trading career in 1994 with Schonfeld Securities and has been a key figure in the hedge fund industry since 1999. His expertise in identifying overlooked investment opportunities has been instrumental in BAM’s success, emphasizing a research-driven approach to uncovering unique, high-return strategies.
Beyond his work in finance, Balyasny is deeply committed to philanthropy and education. In 2021, he founded ATLAS Fellows, Inc., a nonprofit dedicated to providing under-resourced young individuals with opportunities for careers in finance and investing. Additionally, he actively supports the Ayn Rand Institute and various educational initiatives aimed at fostering intellectual and professional development. As a board member for Teach for America Chicago, he contributes to advancing educational equity and supporting community engagement programs.
Balyasny holds a Bachelor of Business Administration in Finance from Loyola University Chicago. His philosophy in investing is centered on focusing on “misunderstood situations,” leveraging in-depth research to uncover opportunities others may overlook. This contrarian yet disciplined approach has solidified his reputation as a leading figure in the investment industry.
Once an unknown name in the financial sector, Dmitry Balyasny has since risen to prominence as one of the industry’s top investors. His ability to navigate complex markets and adapt to changing economic conditions has made him a respected voice in the hedge fund world. Through his leadership at BAM and his philanthropic efforts, he continues to influence both the financial and educational landscapes, leaving a lasting impact on the industry and beyond.
As of its latest filing for the fourth quarter of 2024, Balyasny Asset Management oversees approximately $67.14 billion in 13F securities. The firm maintains a well-diversified portfolio, with its top ten holdings representing just 6.13% of total assets, reflecting a balanced investment approach that mitigates risk while capitalizing on strategic opportunities.
Our Methodology
The stocks discussed below were picked from Balyasny Asset Management’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 223
Balyasny Asset Management’s Equity Stake: $410.70 Million
As the primary supplier of high-performance GPUs to top tech companies, NVIDIA Corporation (NASDAQ:NVDA)’s dominance as having an 80% market share remains unchallenged despite the premium pricing of its products. The launch of its Blackwell architecture has further strengthened its market position, which has translated into exceptional financial performance, with the company reporting record-breaking revenue of $39.3 billion in its most recent quarter. This figure represents a 12% increase from the previous quarter and an impressive 78% year-over-year growth, largely driven by a 93% surge in its data center segment.
Looking ahead, NVIDIA Corporation (NASDAQ:NVDA) projects continued growth, forecasting $43 billion in revenue for the April quarter. This represents a 9% sequential increase and a 65% jump year-over-year, exceeding analysts’ expectations of $42.1 billion. Despite concerns about rising competition, NVIDIA’s aggressive innovation strategy, including its commitment to annual GPU updates, ensures that it maintains a technological edge. The company’s ability to sustain high demand for AI chips amid evolving industry trends reinforces its long-term market leadership and growth potential.
In addition to AI advancements, NVIDIA Corporation (NASDAQ:NVDA) is expanding its research efforts into quantum computing. The company recently announced the launch of the Nvidia Accelerated Quantum Research Center (NVAQC) in Boston, where it will collaborate with researchers from Harvard University, the Massachusetts Institute of Technology (MIT), and leading quantum firms such as Quantinuum, Quantum Machines, and QuEra Computing. This initiative was unveiled at NVIDIA’s annual software developer conference, underscoring its ambition to stay at the forefront of emerging technologies. While CEO Jensen Huang had previously suggested that practical quantum computing is still two decades away, he later walked back these comments, highlighting the industry’s rapid developments and potential near-term breakthroughs.
NVIDIA’s stronghold in AI, its continuous innovation in GPU technology, and its proactive investment in quantum computing position it as a formidable player in the tech industry. As demand for AI and quantum computing continues to rise, NVIDIA’s ability to adapt and lead makes it a promising stock for long-term growth.
Parnassus Growth Equity Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) continued to lead the market for graphics processing units and semiconductor chips needed to power AI applications. Because our position in the stock is an underweight relative to the nearly 12% of the benchmark it now represents, it was a relative detractor for the year.”
Overall, NVDA ranks 4th on our list of top stocks to buy according to Balyasny Asset Management. While we acknowledge the potential for NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.