Renaissance Technologies Portfolio: 10 Best Stocks To Buy

3. NVIDIA Corporation (NASDAQ:NVDA)

Stake Value as of Q2 2024: $867,494,208

NVIDIA Corporation (NASDAQ:NVDA) is a software and fabless company headquartered in Santa Clara, California. Its share price has soared by over 2000% in the last five years, fueled by strong demand for graphics processing units (GPU) and AI models. It remains the go-to company for cloud computing firms looking for GPUs and semiconductors as they expand investments in artificial intelligence, and this has been a critical catalyst behind NVIDIA’s financial growth.

The company continues to drive robust results and had another impressive quarter during Q2 FY25, in which revenue increased 122% year-over-year to reach $30 billion, beating forecasts of $28 billion. Net income totaled $16.6 billion with an EPS of $0.68, going past analyst expectations of $0.645. The strong show during the quarter was attributed to a surge in demand for data center chips.

NVIDIA anticipates revenue in Q3 to be around $32.5 billion, with gross margins between 74.4% to 75%. It also expects continued revenue growth from its Blackwell and Hopper Architecture products during the backend of the year. There is consensus among Street analysts on the stock’s Strong Buy rating. They also expect an 18% upside in its share price. Having said that, if the market matures and growth fails to meet expectations, that could lead to a downward turn in the share price.

Most investors, however, remain bullish on the stock. According to Insider Monkey’s database, 179 hedge funds had investments in NVIDIA Corporation (NASDAQ:NVDA) as of Q2 2024. Ithaka US Growth Strategy stated the following regarding the company in its Q2 2024 investor letter:

NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including data center acceleration, artificial intelligence (AI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefited from tremendous excitement surrounding the further development of generative AI and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future; Second, Nvidia posted another strong beat and-raise quarter, where the company upped its F2Q25 revenue guidance above Street estimates, showcasing its dominant position in the buildout of today’s accelerated computing infrastructure.

NVIDIA is one of the best stocks to buy from the Renaissance Technologies portfolio. The hedge fund has a stake valued at over $867 million in the company, as of June 30, 2024.