Top 10 Stocks to Buy According to Balyasny Asset Management

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders as of Q4: 223

Balyasny Asset Management’s Equity Stake: $410.70 Million 

As the primary supplier of high-performance GPUs to top tech companies, NVIDIA Corporation (NASDAQ:NVDA)’s dominance as having an 80% market share remains unchallenged despite the premium pricing of its products. The launch of its Blackwell architecture has further strengthened its market position, which has translated into exceptional financial performance, with the company reporting record-breaking revenue of $39.3 billion in its most recent quarter. This figure represents a 12% increase from the previous quarter and an impressive 78% year-over-year growth, largely driven by a 93% surge in its data center segment.

Looking ahead, NVIDIA Corporation (NASDAQ:NVDA) projects continued growth, forecasting $43 billion in revenue for the April quarter. This represents a 9% sequential increase and a 65% jump year-over-year, exceeding analysts’ expectations of $42.1 billion. Despite concerns about rising competition, NVIDIA’s aggressive innovation strategy, including its commitment to annual GPU updates, ensures that it maintains a technological edge. The company’s ability to sustain high demand for AI chips amid evolving industry trends reinforces its long-term market leadership and growth potential.

In addition to AI advancements, NVIDIA Corporation (NASDAQ:NVDA) is expanding its research efforts into quantum computing. The company recently announced the launch of the Nvidia Accelerated Quantum Research Center (NVAQC) in Boston, where it will collaborate with researchers from Harvard University, the Massachusetts Institute of Technology (MIT), and leading quantum firms such as Quantinuum, Quantum Machines, and QuEra Computing. This initiative was unveiled at NVIDIA’s annual software developer conference, underscoring its ambition to stay at the forefront of emerging technologies. While CEO Jensen Huang had previously suggested that practical quantum computing is still two decades away, he later walked back these comments, highlighting the industry’s rapid developments and potential near-term breakthroughs.

NVIDIA’s stronghold in AI, its continuous innovation in GPU technology, and its proactive investment in quantum computing position it as a formidable player in the tech industry. As demand for AI and quantum computing continues to rise, NVIDIA’s ability to adapt and lead makes it a promising stock for long-term growth.

Parnassus Growth Equity Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) continued to lead the market for graphics processing units and semiconductor chips needed to power AI applications. Because our position in the stock is an underweight relative to the nearly 12% of the benchmark it now represents, it was a relative detractor for the year.”