In this article, we will discuss the 10-year returns of former U.S. president Barack Obama’s stock portfolio.
Former United States President Barack Obama took office during one of the worst recessions in U.S. history, yet the stock market reached new highs during his tenure. Stepping into office in 2009, the year after stocks plummeted nearly 40% amid the financial crisis of 2007-2008, Obama made a remarkably well-timed market prediction. On March 3, 2009, just days before the S&P 500 hit an intraday low of 666 and a closing low of 676.53, the then-president stated, “What you’re now seeing is profit-and-earnings ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it.” By the time he left office on January 20, 2017, the S&P 500 had soared to 2,263.69, reflecting a gain of about 225% since his predictive remark.
The “Obama Years” coincided with rapid technological advancements that significantly impacted the stock market. Apple Inc.’s iPhone, introduced less than two years before he took office, exemplified this era of innovation. In addition, during Obama’s presidency, billionaire Reed Hastings transformed Netflix Inc. from a DVD rental-by-mail company into a video-streaming giant, revolutionizing entertainment consumption. On the other hand, renewable energy, particularly solar energy, struggled during the president’s tenure. Despite the administration’s solar subsidies, investors were largely disappointed as those subsidies eventually faded. First Solar Inc., one of the largest U.S. solar equipment producers, saw its stock plummet by as much as 74% due to falling solar panel prices, making it the worst-performing S&P 500 stock of the Obama era.
How Did the Obamas Make Their Money?
From speaking at events worldwide to writing memoirs and signing a major production deal with Netflix, the Obamas have led a busy and highly lucrative life post-White House. Michelle Obama’s first memoir, “Becoming,” published in November 2018, became that year’s No. 1 best-selling book. Her second book, “The Light We Carry: Overcoming in Uncertain Times,” also achieved bestseller status. Similarly, Barack Obama’s latest memoir, “A Promised Land,” sold nearly 890,000 copies within 24 hours of its November 2020 release. These ventures, along with the six-figure pension that all former presidents receive, have significantly boosted the Obamas’ net worth, which is at least $70 million according to the International Business Times. The New York Post, however, estimates their fortune to be much higher, at $135 million.
Of course, Barack Obama’s income isn’t limited to speaking fees and pensions. Like many other wealthy individuals, he has invested significantly in the stock market. So what does his portfolio look like? When he took office in 2009, Obama, like all presidents, was required to make financial disclosures by law. At that time, Obama held $200,000-$450,000 in the Vanguard 500 Index Fund Investor Shares that tracks the S&P 500 index, according to a report by CBS News.
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Our Methodology
These investments were selected from the top holdings of the Vanguard 500 Index Fund Investor Shares, one of Barack Obama’s primary investments during his presidency, according to official disclosures. We have provided each stock’s trailing 10-year returns to assess their performance over the decade. Data from approximately 919 elite hedge funds tracked by Insider Monkey in the fourth quarter of 2024 was also analyzed to determine the number of hedge funds holding stakes in each firm.
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 best hedge funds. Our quarterly newsletter’s strategy picks 14 small and large-caps every quarter and it has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Note: The stocks are sorted in ascending order of their trailing 10-year returns.
10. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 119
Trailing 10-Year Returns: 12.60%
Berkshire Hathaway Inc. (NYSE:BRK-B), headquartered in Omaha, Nebraska, operates as a diversified multinational conglomerate holding company primarily within the insurance sector. It utilizes capital generated from insurance operations to invest in a broad spectrum of subsidiaries, equity holdings, and securities across various industries.
Argus Research recently upgraded Berkshire Hathaway Inc. (NYSE:BRK-B) to a Buy from Hold, citing a favorable view of the company’s conglomerate structure and its impressive track record over the past 60 years.
Additionally, Berkshire Hathaway Inc. (NYSE:BRK-B)’s first-quarter financial report on May 4 showed a 5% revenue increase to $89.9 billion compared to the same period last year. Net operating earnings saw a substantial 39% rise to $11.2 billion, and earnings per diluted Class B share increased from $3.69 to $4.80 year-over-year. This strong performance is reflected in the company’s stock value, which has climbed 19.87% over the past year. Over a five-year span, Berkshire Hathaway shares have surged 97.67%, exceeding the S&P 500’s 88.14% return.
In the first quarter of the current year, Insider Monkey’s analysis of 919 hedge funds revealed that 119 had invested in Berkshire Hathaway Inc. (NYSE:BRK-B). Among these investors, the largest shareholder was Michael Larson’s Bill & Melinda Gates Foundation Trust, which held 17.3 million shares valued at $7.27 billion.
9. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 112
Trailing 10-Year Returns: 15.41%
JPMorgan Chase & Co. (NYSE:JPM) is a global entity operating across various sectors, including Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management.
Piper Sandler on June 14 maintained its Overweight rating and $220.00 price target for JPMorgan Chase & Co. (NYSE:JPM) following an encouraging update on the bank’s revenue expectations for the second quarter of 2024. The positive outlook was shared by Troy Rohrbaugh, co-CEO of the Commercial & Investment Bank at JPMorgan, during an industry conference where he provided revised revenue guidance for the investment banking and markets segments. This revision suggests a more optimistic outlook for JPMorgan Chase & Co. (NYSE:JPM)’s performance, prompting Piper Sandler to adjust its earnings per share estimates for the coming years. The firm’s estimated EPS for 2024 has been increased from $16.76 to $16.95, with the second quarter of 2024 EPS estimate rising from $4.54 to $4.63.
Analysts also have a positive outlook on JPMorgan’s financial performance, with a stable Return on Tangible Common Equity (ROTCE) target of 17% and an expected Net Interest Income (NII) for 2024 around $91 billion.
According to Insider Monkey’s analysis of 919 hedge fund portfolios for their fourth-quarter 2023 holdings, 112 hedge funds had positions in the bank. Notably, Ken Fisher’s Fisher Asset Management held the largest stake in JPMorgan Chase & Co. (NYSE:JPM), valued at $2.45 billion.
Carillon Tower Advisers said the following about JPMorgan Chase & Co. (NYSE:JPM) in its fourth-quarter 2023 investor letter:
“PNC Financial and JPMorgan Chase & Co. (NYSE:JPM) performed well due to more benign inflation data, which the market likely interpreted as a sign that a recession is now less likely to occur. Recall that historically speaking, banks are hyper-cyclical stocks and typically will trade lower if investors foresee a recession, because recessions tend to trigger loan losses.”
8. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 165
Trailing 10-Year Returns: 21.05%
Alphabet Inc. (NASDAQ:GOOG), a prominent player in the technology sector, is best known for its flagship product, Google, a search engine handling billions of daily queries. The company’s portfolio extends to diverse platforms for video streaming and productivity, with YouTube being a standout asset. The internet giant is also engaged in retailing electronic devices such as smartphones, ultra-thin notebooks, and speakers.
Alphabet Inc. (NASDAQ:GOOG) recently showed its commitment to artificial intelligence (AI) by unveiling new AI features and products at its Google I/O developer conference on May 14. The biggest announcement from the conference is that Alphabet Inc. (NASDAQ:GOOG) is set to fully incorporate AI overlays into its Google search results. Currently being rolled out, these new overlays are expected to reach 1 billion people by the end of the year.
In addition, Alphabet Inc. (NASDAQ:GOOG)’s CEO Sundar Pichai announced back in April that YouTube and Google’s cloud business are projected to achieve a combined annual run rate exceeding $100 billion by the end of 2024, underscoring major revenue streams for the tech giant. YouTube reported $8.1 billion in ad sales for the first quarter ending March 31, its highest Q1 revenue to date, reflecting a 21% year-over-year increase from $6.7 billion in Q1 202
Among the hedge funds being tracked by Insider Monkey, Texas-based investment firm Fisher Asset Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG), holding 46.3 million shares worth more than $6.99 billion.
7. Meta Platforms Inc (NASDAQ:META)
Number of Hedge Fund Holders: 246
Trailing 10-Year Returns: 23.14%
Meta Platforms Inc. (NASDAQ:META) is one of the elite stocks in the Vanguard 500 Index Fund Investor Shares (NASDAQ:VFINX) that Barack Obama held stakes in during his time in office.
In the first quarter, Meta Platforms Inc. (NASDAQ:META) reported a 27% increase in revenue, reaching $36.5 billion, with a significant 97% of this revenue generated from ads. Looking ahead to 2024, Meta’s ad revenue is projected to grow by 17%. Reels, which has been showing strong performance and engagement recently, experienced a 20% ad load in the first quarter, up from 16.2% in the same quarter last year.
The social media giant has been drawing attention for several reasons. For example, BMO Capital has maintained its Market Perform rating for META following an interview with Instagram Head Adam Mosseri. The interview revealed that Instagram is boosting performance bonuses for content creators and underscored the potential need for new revenue streams within the app. Additionally, the U.S. Supreme Court is reviewing a shareholder lawsuit against Meta Platforms Inc. (NASDAQ:META), led by Amalgamated Bank, which alleges misleading information about user data misuse in 2017 and 2018.
Conversely, Mizuho analysts have raised concerns about potential challenges for META stock in a recent research note, despite maintaining a bullish stance. Mizuho is particularly worried about possible announcements during the upcoming July earnings call. They expect the CEO to discuss increased capital expenditures (capex) for AI and metaverse initiatives, which could be negatively received by investors.
In the March quarter of this year, Insider Monkey’s data indicated that 246 out of the 919 hedge funds tracked had purchased and held shares of Meta Platforms, Inc. (NASDAQ:META). Among these, Rajiv Jain’s GQG Partners emerged as the largest stakeholder, with a $5.58 billion investment in the company.
RiverPark Large Growth Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its first quarter 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): Meta was a top contributor in the quarter following fourth quarter earnings results in which the company reported accelerating revenue growth and expanding margins driven by a rebound in online advertising and strong user growth. On February 2nd, Meta reported 4Q23 revenue of $40.1 billion (+25% y/y up from +23% in 3Q23) and EPS of $5.33 (+203% y/y), and the midpoint of 1Q24 revenue guidance was $35.8 billion (+25% y/y), all well ahead of investors’ expectations. The company reported impressive revenue acceleration in its core advertising businesses, including new products like Reels and Threads. Advertiser adoption of Meta’s AI targeting tools helped drive strong ROI and higher spend across multiple categories.
META owns multiple social media platforms, each with more than one billion users, has an 81% gross margin, and generated $44 billion of FCF in 2023. Both its Facebook and its Instagram franchises have more than 2 billion Daily Active Users and generate the bulk of the company’s revenue. Recently, the company’s short form video offering, Reels, and public text-sharing app, Threads, achieved mass user engagement and growing advertiser adoption which have helped return the company to strong revenue and free cash flow growth. Even after the recent stock price advance, META shares trade at 20x Wall Street’s consensus estimates for 2025 EPS, estimates that we think could prove to be too low.”
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 150
Trailing 10-Year Returns: 24.83%
Apple Inc. (NASDAQ:AAPL) stands as a prominent tech giant. Headquartered in Cupertino, California, the company is renowned for its flagship products, including the iPhone, iPad, and Mac. Notably, Bloomberg recently reported on May 9 that the tech giant plans to incorporate its own high-end chips in data centers to deliver AI features this year.
TF International Securities analyst Ming-Chi Kuo said in a fresh note that Apple has a competitive edge over others with its on-device AI.
“Consumers may find purchasing Microsoft’s AI PC confusing (calculating whether it reaches 40 TOPS before purchase), whereas Apple directly tells consumers which models can support Apple Intelligence. Regardless of whether on-device AI applications meet consumer needs, Apple has a clear selling advantage from the start,” Kuo said.
On June 14, Erste Group upgraded its rating on Apple Inc. (NASDAQ:AAPL) from Hold to Buy, citing several positive factors contributing to the tech giant’s favorable outlook. The firm highlighted Apple Inc. (NASDAQ:AAPL)’s strong customer loyalty and continuous product innovation as key strengths. They emphasized the company’s advancements in its Mac lineup, particularly the introduction of the M4 chip, as a significant driver of long-term growth.
As of the first quarter of 2024, Insider Monkey’s database revealed that 150 hedge funds held stakes in Apple Inc. (NASDAQ:AAPL), collectively valued at $205 billion. This represented a notable increase from the previous quarter, where 131 hedge funds held stakes valued at $161 billion.
RiverPark Large Growth Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its first quarter 2024 investor letter:
“Apple Inc. (NASDAQ:AAPL): Apple shares were a top detractor in the quarter. The company’s stock was pressured by negative news items including a government antitrust case, an Apple Watch patent dispute, and slowing China iPhone sales. Ultimately the company’s fiscal 1Q24 earnings report delivered a slightly better than expected quarter, but with guidance that disappointed investors. 1Q24 revenue and gross margin were better than feared, buoyed by stronger than expected worldwide iPhone sales which grew 6% despite a slight decline in China iPhone sales. Services revenue in the quarter was as expected and signaled the third quarter in a row of accelerating growth. Gross margins were also stronger than expected at 45.9%, the highest level in more than a decade. Guidance of $90 billion of revenue for 2Q24 was light however, due to weaker than expected iPhone sales in the current period and year-over-year declines in other hardware products facing difficult year-over year comps.
Although near-term trends are a bit muted, Apple is carrying lean inventory into an iPhone refresh cycle later this year. With an installed base of 2.2 billion active devices and significant growth of the company’s recurring revenue Services segment, we believe that Apple remains one of the most innovative, best positioned and most profitable companies in the mobile technology industry.”
5. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 293
Trailing 10-Year Returns: 27.35%
Headquartered in Redmond, Washington, Microsoft Corporation (NASDAQ:MSFT) is a prominent American multinational corporation specializing in technology. Renowned for its Windows line of operating systems, the Microsoft 365 suite of productivity applications, and the Edge web browser, Microsoft holds a significant position in the software industry. Microsoft Corporation (NASDAQ:MSFT) stands as the largest stock in the Vanguard index in which former President Barack Obama had stakes during his time in office.
Tigress Financial Partners recently updated their outlook on Microsoft Corporation (NASDAQ:MSFT), raising the 12-month price target to $550 while maintaining a Buy rating on the stock. The firm underscored Microsoft’s strategic positioning to lead the artificial intelligence (AI) revolution as a key driver of its robust financial performance.
Furthermore, in its recent earnings report, Microsoft Corporation (NASDAQ:MSFT) reported a 17% year-over-year increase in quarterly revenue, reaching $61.9 billion. This growth was driven by strong performances across various segments, notably a 23% increase in cloud revenue, which totaled $35.1 billion. The expansion of Microsoft’s cloud services, particularly Azure, has been pivotal to this success, with significant customer migration and a growing number of substantial Azure deals contributing to the impressive results.
Insider Monkey’s analysis of 919 hedge fund holdings for Q1 2024 revealed that 293 shareholders held stakes in Microsoft Corporation (NASDAQ:MSFT). Notably, Michael Larson’s Bill & Melinda Gates Foundation Trust emerged as the firm’s largest hedge fund shareholder, with holdings valued at $15.35 billion.
4. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Holders: 302
Trailing 10-Year Returns: 28.41%
Amazon.com, Inc. (NASDAQ:AMZN), a leading American multinational technology conglomerate, operates across various sectors including e-commerce, cloud computing (Amazon Web Services – AWS), online advertising, digital streaming, and artificial intelligence. In the first quarter, the retail giant surpassed expectations with $143.3 billion in revenue and earnings per share of $0.98, beating the estimates of $142.5 billion in revenue and $0.83 EPS.
On June 14, JPMorgan reiterated its Overweight rating on Amazon.com, Inc. (NASDAQ: AMZN), maintaining a price target of $240. This decision followed a comprehensive analysis of the U.S. e-commerce landscape, considering category penetration and Amazon’s market share. The research indicates that Amazon is on track to surpass Walmart as the largest U.S. retailer by 2024, with long-term e-commerce penetration potentially exceeding 40%.
Furthermore, the tech giant has been strengthening its leadership in AI through its AWS business, which achieved operating margins of over 37% in the first quarter. AWS has consistently maintained operating margins above 30% for the past five quarters. Additionally, Amazon.com, Inc. (NASDAQ:AMZN)’s first-quarter revenue saw a 12.5% year-over-year increase, and its adjusted EPS more than tripled.
According to Insider Monkey’s research for the March quarter of 2024, out of the 919 hedge funds covered, 302 held stakes in Amazon.com, Inc. (NASDAQ:AMZN). Ken Fisher’s Fisher Asset Management was identified as the largest hedge fund investor in the company, with a stake valued at $7.67 billion.
Vulcan Value Partners stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its first quarter 2024 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is a dominant, world class company with powerful secular tailwinds in place including its ecommerce penetration, digital advertising growth, and the cloud transition. Amazon reported strong results during the quarter. Losses in the Core Retail business significantly narrowed. Amazon reduced its cost to serve on a per unit basis for the first time since 2018 as the company’s recent regionalization efforts continue to bear fruit.”
3. Eli Lilly And Co (NYSE:LLY)
Number of Hedge Fund Investors: 109
Trailing 10-Year Returns: 30.06%
Founded in 1876, Eli Lilly and Company (NYSE:LLY) is a distinguished American pharmaceutical firm headquartered in Indianapolis, Indiana. Named after its founder, Colonel Eli Lilly, a pharmaceutical chemist and Civil War veteran, the company has established a global presence, operating in 18 additional countries.
Barclays recently reaffirmed its Overweight rating on Eli Lilly and Company (NYSE:LLY) with a consistent price target of $913.00. This positive outlook follows a generally favorable review of Eli Lilly’s Alzheimer’s drug, donanemab, by the Advisory Committee (AdCom) panel, with attention now turning to the regulatory agency’s decision on the drug’s finite dosing strategy. While donanemab’s impact on LLY’s shares might be limited, as it is considered secondary to the company’s broader GLP-1 narrative, its approval could significantly influence the Alzheimer’s drug market, especially in relation to competitor Biogen’s medication, Leqembi.
Eli Lilly and Company (NYSE:LLY) shares are currently trading at a P/E ratio of 131.56, significantly above its 5-year average of 48.69. This elevated valuation is supported by the potential of Eli Lilly and Company (NYSE:LLY)’s weight loss drugs, such as Mounjaro and Zepbound, and the strong market demand for weight loss medications.
As of the end of March 2024, Insider Monkey’s database revealed that 109 out of 919 hedge funds had invested in Eli Lilly and Company (NYSE:LLY). Among these investors, Ken Fisher’s Fisher Asset Management emerged as the company’s leading shareholder, with a stake valued at $3.65 billion.
Baron Health Care Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its first quarter 2024 investor letter:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company that discovers, develops, manufactures, and sells medicines in the categories of diabetes, oncology, neuroscience, and immunology, among other areas. Stock performance was strong due to robust fourth quarter sales of Mounjaro/ Zepbound, better-than-anticipated initial guidance for fiscal year 2024, and ongoing enthusiasm surrounding the company’s obesity and diabetes franchises. We continue to think Lilly is well positioned to grow revenue and earnings at attractive rates through the end of the decade and beyond.”
2. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 115
Trailing 10-Year Returns: 36.47%
Headquartered in California, Broadcom Inc. (NASDAQ:AVGO) holds a prominent position as a global semiconductor company, focusing on the design, development, and distribution of diverse products, including set-top box SoCs, networking equipment, and RF semiconductor devices.
Broadcom Inc. (NASDAQ:AVGO) recently reported impressive quarterly results, prompting several investment banks to raise their price targets. The chipmaker increased its forecast for annual revenue from AI-linked chips to $11 billion from $10 billion and revised its annual revenue and core profit projections upwards. Additionally, Broadcom Inc. (NASDAQ:AVGO) announced a 10-for-1 stock split, with the growing adoption of generative AI driving demand for Broadcom’s chips and networking tools supporting these intensive applications.
In light of this, Deutsche Bank raised its 12-month price target on AVGO to $1,900 from $1,400 and increased its EPS estimates while maintaining a ‘buy’ rating. Similarly, Goldman Sachs lifted Broadcom Inc. (NASDAQ:AVGO)’s 12-month price target to $1,850 from $1,550 and increased its FY2024-26 revenue and non-GAAP EPS estimates, on average, by 7% and 6%, respectively.
Insider Monkey’s database for the first quarter showcased a rise in bullish sentiment towards Broadcom Inc. (NASDAQ:AVGO), with 115 hedge funds expressing interest, compared to 91 funds in the previous quarter. Noteworthy among them, Rajiv Jain’s GQG Partners emerged as the company’s largest stakeholder, boasting holdings totaling 2.99 million shares valued at $3.96 billion.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 186
Trailing 10-Year Returns: 70.55%
Headquartered in Santa Clara, California, NVIDIA Corporation (NASDAQ:NVDA) is a leading multinational technology company known for designing and selling GPUs (Graphics Processing Units) for various applications, including gaming, cryptocurrency mining, and professional uses. Additionally, NVIDIA provides chip systems for sectors such as vehicles, robotics, and other tools. It is one of the top stocks in the Vanguard 500 Index Fund Investor Shares.
NVIDIA Corporation (NASDAQ:NVDA)’s stock has continued its market-leading rally this year, pushing the AI chip leader’s valuation past $3 trillion and increasing its influence within the S&P 500. Notably, NVIDIA Corporation (NASDAQ:NVDA) alone accounts for 34.5% of the S&P 500’s market cap gains so far this year, according to Apollo Chief Economist Torsten Sløk. The stock has soared 173.78% year-to-date and is up more than 208.92% from a year ago, driven by the AI craze gripping Wall Street. The company’s quarterly earnings indicate that the demand for AI chips shows no signs of slowing.
Additionally, NVIDIA Corporation (NASDAQ:NVDA)’s latest product announcements and plans unveiled at Computex demonstrate its robust growth potential. Analysts highlight the company’s transition to a new AI architecture known as Rubin (R100) and its powerful H100 and Blackwell chips, which are seen as superior to competitors’ offerings.
During the first quarter of this year, Insider Monkey’s research revealed that 186 out of the 919 hedge funds covered had invested in NVIDIA Corporation (NASDAQ:NVDA). Among these investors, Rajiv Jain’s GQG Partners emerged as the largest shareholder with a $12.07 billion investment in the company.
Patient Capital Opportunity Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its first quarter 2024 investor letter:
“This quarter we entered two new positions, while exiting four positions. Our first new position was NVIDIA Corporation (NASDAQ:NVDA), which we bought early in the quarter. Nvidia is the market leader in designing and selling Graphics Processing Units (GPU), which has recently benefited from the insatiable demand of artificial intelligence (AI) models. The company currently captures 92% market share of data center GPUs and grew revenue, earnings and FCF an astounding 126%, 392%, and 610%, respectively, over the last year. While much of the focus is on Nvidia’s market cap reaching $2.3T, up 230% over the last year, the company’s valuation has actually come down over that period. As of 3/31/23, consensus was valuing the company at 61x forward EPS. This compares to today, where the company is being valued at 37x. While yes, we have never seen a company expand their market cap by so much so quickly, we have also never seen a company grow their fundamental earnings and cash generation so quickly (and which is actually expanding faster than valuation). While competitors are working to enter the GPU space, Nvidia has created a moat around their GPUs with their CUDA software offering. While we do expect the large cloud players to continue to move into the market, we think NVDA can continue to demand top market share. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of accelerated computing and artificial intelligence (AI).
Nvidia Corp. (NVDA) was a top performer in the quarter gaining 82.5% in the period. While the company has had an impressive run, gaining 242% over the last year, the valuation has been supported by the impressive growth in Revenue (126%), EPS (392%) and free cash flow (610%) over the last year. The company has solidified its position in the GPU space supported by its proprietary software CUDA. While we expect competition to increase, we think NVDA can continue to maintain top market share. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of artificial intelligence (AI).”
While we acknowledge the potential of NVDA as an AI play, there are more attractive opportunities in the market. If you are looking for an AI stock that is as promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
