8. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 115
SICM’s Equity Stake: $9.92 Million
NVIDIA Corporation (NASDAQ:NVDA) is a leading American multinational technology company headquartered in Santa Clara, California, and incorporated in Delaware. Established in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, the company specializes in designing graphics processing units (GPUs), application programming interfaces (APIs) for high-performance computing and data science, and system-on-a-chip (SoC) units for mobile and automotive applications. Nvidia is a dominant force in artificial intelligence (AI) hardware and software, though it outsources the manufacturing of its hardware. Its professional GPUs support various industries, including architecture, engineering, scientific research, and media, while its GeForce lineup dominates the consumer market, particularly in gaming and content creation.
By the second quarter of 2023, Nvidia controlled 80.2% of the discrete desktop GPU market. The company has expanded into gaming hardware with products such as the Shield series and cloud gaming service GeForce Now. Additionally, NVIDIA Corporation (NASDAQ:NVDA) develops the CUDA platform, enabling massively parallel computing, and has ventured into mobile computing with its Tegra processors for smartphones, tablets, and automotive systems. Competing with firms like AMD, Intel, and Qualcomm, as well as AI accelerator companies such as Cerebras and Graphcore, the company continues to drive advancements in AI-powered software for audio and video processing, including Nvidia Maxine.
NVIDIA Corporation (NASDAQ:NVDA) reported impressive financial growth in the quarter ending on October 27, 2024. The company achieved $35.08 billion in revenue, reflecting a nearly 94% increase from the corresponding quarter in the previous year. Earnings per share also saw a significant rise, reaching $0.81, which marked a 103% jump compared to the same period in 2023. Additionally, the company announced a quarterly cash dividend of $0.01 per share.
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.”
