7. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 223
Jericho Capital Asset Management’s Equity Stake: $323.24 Million
NVIDIA Corporation (NASDAQ:NVDA) continues to dominate the high-performance GPU market, reporting record-breaking revenue of $39.3 billion in its most recent quarter. This marks a 12% increase from the prior quarter and a 78% year-over-year growth, largely fueled by a 93% surge in its data center segment. With AI applications driving unprecedented demand for GPUs, NVIDIA remains at the forefront of the industry, leveraging its technological edge to sustain growth.
NVIDIA Corporation (NASDAQ:NVDA) has projected revenue of $43 billion for the April quarter, reflecting a 9% sequential increase and a 65% year-over-year jump, surpassing analysts’ expectations of $42.1 billion. Despite the emergence of competitors, NVIDIA’s commitment to annual GPU advancements ensures its continued dominance in AI computing. The company’s focus on developing cutting-edge chips for AI workloads and data centers positions it as an indispensable player in the rapidly evolving tech landscape. As AI adoption accelerates, NVIDIA’s strategic innovation and expansion efforts reinforce its long-term growth trajectory.
Beyond AI, NVIDIA Corporation (NASDAQ:NVDA) is making strides in quantum computing through the launch of the Nvidia Accelerated Quantum Research Center (NVAQC) in Boston. This research effort underscores NVIDIA’s ambition to pioneer next-generation computing technologies despite previous skepticism about the near-term feasibility of practical quantum computing. With rapid advancements in the field, NVIDIA is well-positioned to capitalize on potential breakthroughs that could redefine computational capabilities.
In addition to quantum computing, NVIDIA Corporation (NASDAQ:NVDA) is expanding into robotics through a partnership with OpenAI-backed Norwegian startup 1X. The collaboration focuses on developing autonomous humanoid robots for home use, with a recent demonstration at the Nvidia GTC conference showcasing a robot autonomously loading a dishwasher. Using NVIDIA’s AI models and onboard GPUs, the humanoid robot, Neo Gamma, learned complex tasks through imitation learning, highlighting NVIDIA’s growing influence in AI-powered automation. With 1X planning to test these robots in homes by year-end, NVIDIA’s investment in robotics further cements its role as a leader in AI-driven innovation across multiple industries.
Guinness Global Innovators stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund’s top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia’s ‘Hopper’ GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current ‘Hopper’ GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia’s extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to “inference” (the speed at which AI models respond to queries). Throughout the year, Nvidia’s financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia’s data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia’s technological leadership, ensuring continued momentum into 2025. While Nvidia’s valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.”
