These 5 Semiconductor Stocks Are Popular On Reddit

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 102

NVIDIA Corporation (NASDAQ:NVDA) designs and sells semiconductors referred to as graphics processing units (GPUs). These products are used in a wide variety of applications, such as video games, video processing, visualization, data centers, and cloud computing. It is based in Santa Clara, California, United States.

NVIDIA Corporation (NASDAQ:NVDA) has one of the strongest product portfolios in the industry right now, as it designs and sells nearly every product needed in data center and cloud computing. This lends its enterprise computing segment a total addressable market (TAM) of roughly $500 billion.

Baird lowered the company’s share price target to $150 from $165 in July 2022, due to concerns about inventory buildups at retailers for personal computing GPUs. Insider Monkey analyzed 912 hedge fund portfolios for this year’s first quarter and found out that 102 had invested in the company.

NVIDIA Corporation (NASDAQ:NVDA)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 7.3 million shares that are worth $1.9 billion.

RiverPark Funds had the following to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:

“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.

We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”

Disclosure: None. You can also take a look at 10 Best Undervalued Automobile Stocks to Buy Now and Analyst Are Cutting Estimates on These 10 Tech Stocks.

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