7. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q3: 193
LMCG’s Equity Stake: $30.06 Million
NVIDIA Corporation (NASDAQ:NVDA) is a U.S.-based multinational technology company with its headquarters in Santa Clara, California, and is legally incorporated in Delaware. In November 2024, the company reported strong sales figures for the third quarter that ended on October 27, 2024, of $35.1 billion, up nearly 94% from a year ago. Similarly, earnings per share were announced at $0.81, increasing by a solid 103% from the same quarter in 2023. NVIDIA announced its next quarterly cash dividend payout of $0.01 per share on December 27, 2024.
These figures were driven by the global shift to AI and subsequently to NVIDIA computing. Jensen Huang, the founder and CEO of NVIDIA Corporation (NASDAQ:NVDA), emphasized that “AI is transforming every industry, company, and country,” highlighting how businesses are leveraging agentic AI to reshape workflows. He noted that advancements in physical AI are driving significant investments in industrial robotics and that even national governments around the world are increasingly recognizing the importance of developing their own AI capabilities and infrastructure.
Argus Research has reiterated its BUY rating for Nvidia Corporation (NASDAQ:NVDA), setting a 12-month price target of $175. Although Nvidia competes with major semiconductor and AI hardware companies such as AMD and Qualcomm, which focus on gaming and expanding into AI respectively, its advanced technology and broad product portfolio provide a strong competitive edge. For the quarter ending in January 2025, the company anticipates revenue between $36.8 billion and $38.3 billion, reflecting a 70% year-over-year increase. Despite heavy competition from DeepSeek, analysts remain confident, with no downward revisions in earnings projections.
At the end of September 2024, 193 hedge funds tracked by Insider Monkey held stakes in Nvidia Corporation (NASDAQ:NVDA), showing massive improvement from 179 hedge funds in the previous quarter. These stakes hold a consolidated value of roughly $49.06 billion.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. Shares contributed to performance during the quarter, driven by strong demand for its data center products, especially the Hopper H200 chips, which generated double-digit billions in revenue, marking the fastest product ramp in the company’s history. Management provided fiscal fourth-quarter revenue guidance above analyst estimates, along with resilient operating margins supported by robust demand and limited competition. In our view, Nvidia’s leadership in scaling AI infrastructure, including advancements in inference and test-time scaling (i.e., reasoning during inference), is driving adoption among enterprises and startups, providing continued demand for its high-performance chips and software solutions. As older-generation chips are repurposed for inference and new clusters are deployed, we believe Nvidia is well-positioned to capitalize on growing compute needs across AI applications.”
