Philippe Laffont Stock Portfolio: Top 10 Stock Picks

7. NVIDIA Corporation (NASDAQ:NVDA)

Coatue Management’s Stake Value: $1.34 billion

Number of Hedge Fund Holders: 223

NVIDIA Corporation (NASDAQ:NVDA) plans to spend hundreds of billions of dollars on chips as well as several other electronics made in the US. This is expected to happen over the next 4 years, with the company shifting its supply chain back from Asia, reported FT. NVIDIA Corporation (NASDAQ:NVDA)’s Chief Executive Jensen Huang told the FT that the latest chips which are designed by the company, and Nvidia-powered servers for data centers, could be now produced at the US-based factories. As per Huang, this happens to be a big step forward in supply chain resilience.

Elsewhere, UBS analyst Timothy Arcuri affirmed a “Buy” rating on NVIDIA Corporation (NASDAQ:NVDA)’s stock, with a price objective of $185.00. The analyst observed that sovereign AI, which means AI initiatives led by national governments, remains an overlooked factor that can fuel demand for AI infrastructure. Several countries continue to invest in the development of their own AI models as well as applications in a bid to avoid reliance on a few major foundation model developers, primarily located in the US. Overall, the analyst’s comments hint at the significant opportunity for NVIDIA Corporation (NASDAQ:NVDA), as the company remains well-positioned to address the expanding global demand for AI infrastructure fueled by sovereign AI initiatives.

Columbia Threadneedle Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“NVIDIA Corporation (NASDAQ:NVDA) continued to outperform the market during the fourth quarter. The technology giant and top position in the fund delivered on sky-high expectations during the quarter and reported quarterly expectations that exceeded expectations. The red-hot company provided forward-looking expectations which were regarded as slightly lackluster as compared to prior quarters that smashed expectations. While the stock did churn a bit in the quarter, the AI giant remains top of mind for investors, especially as the company is on pace to satisfy the ‘staggering’ demand for its new product, Blackwell, which is poised to enter the market over the next year. The company’s position of owning all the major pieces of the evolving AI data center enables it to strengthen its competitive position and to define the technology roadmap for generations to come.”