Top 10 Stocks to Buy According to Adage Capital Management

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders as of Q4: 223

Adage Capital Management’s Equity Stake: $3.1 Billion 

NVIDIA Corporation (NASDAQ:NVDA) has been the dominant force in the AI boom, with its stock surging over 600% since early 2023 and its market capitalization nearing $3 trillion. However, the stock has shown vulnerability, down about 16% year to date and 27% from its peak, despite beating Q4 earnings expectations with 78% revenue growth to $39.3 billion. For the quarter ending January 2025, the company reported revenue of $39.3 billion, representing a 12% sequential increase and an extraordinary 78% year-over-year growth. A primary contributor to this success was Nvidia’s data center segment, which surged by 93% year-over-year, solidifying its position as a key driver of long-term growth. While Nvidia experienced a 150-basis-point sequential decline in gross margins due to higher costs associated with Blackwell’s rollout, its adjusted gross margin of 73.5% remained within guidance, demonstrating strong financial management.

On March 10, 2025, Melius Research analyst Ben Reitzes reaffirmed his Buy rating on NVIDIA Corporation (NASDAQ:NVDA) but lowered his two-year price target from $195 to $170, citing short-term challenges such as potential tariffs, regulatory restrictions, and cost-reducing advancements in computing. Reitzes noted that the uncertainty surrounding the AI sector has led to erratic stock movements, with Nvidia shares reflecting broader market confusion. However, the upcoming GTC conference in San Jose, where CEO Jensen Huang will deliver a keynote on March 18, is expected to be a significant event that could influence investor sentiment and serve as a potential catalyst for the stock.

Looking ahead, NVIDIA Corporation (NASDAQ:NVDA) remains confident in its growth trajectory, projecting revenue of $43 billion for the April quarter—a 9% sequential increase and a 65% rise year-over-year. This outlook surpasses analyst expectations of $42.1 billion, reinforcing the company’s strong market position and continued ability to drive demand for AI and data center solutions. With its leadership in next-generation computing and robust financials, Nvidia remains a top stock to buy despite short-term market concerns.