Top 10 Stocks to Buy According to Two Sigma Investments

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders as of Q4: 223

Two Sigma Investments’ Equity Stake: $1.23 Billion 

NVIDIA Corporation (NASDAQ:NVDA) continues to lead the AI chip market, commanding an 80% share and maintaining its dominance despite high GPU prices. Demand for its latest Blackwell architecture has exceeded supply, reinforcing its stronghold as the preferred supplier for major tech companies. This position has propelled the company’s financial success, with Nvidia reporting a record $39.3 billion in revenue for its most recent quarter—an extraordinary 78% year-over-year surge, largely driven by a 93% increase in its data center segment. As AI adoption accelerates, Nvidia’s innovation in hardware and software, including the launch of its DGX personal AI supercomputers, further cements its role as the backbone of AI infrastructure. The DGX Spark and DGX Station bring enterprise-grade AI capabilities to desktops, allowing researchers and developers to prototype and deploy advanced models with unprecedented efficiency. These systems integrate seamlessly with Nvidia’s CUDA-X AI platform and NIM microservices, making AI computing more accessible across industries.

The company’s recent launch of DGX personal AI supercomputers, powered by the Grace Blackwell platform, exemplifies its commitment to pushing the boundaries of AI accessibility. By partnering with major manufacturers such as ASUS, Dell, HP, and Lenovo, NVIDIA Corporation (NASDAQ:NVDA) is ensuring that AI development tools reach a broader audience, fostering continued innovation.

Looking ahead, NVIDIA Corporation (NASDAQ:NVDA) remains confident in its long-term growth trajectory, forecasting $43 billion in revenue for the April quarter, a 65% year-over-year jump, exceeding analyst projections of $42.1 billion. While concerns over competition and potential slowdowns persist, the company’s commitment to annual GPU updates and continuous innovation makes it difficult for rivals to capture significant market share. Its leadership in AI hardware, combined with investments in cloud and data center solutions, positions it as a key player in shaping the future of artificial intelligence.

With the growing demand for high-performance AI computing and the expansion of its AI ecosystem, NVIDIA Corporation (NASDAQ:NVDA) appears well-positioned to sustain its dominance and drive technological advancements in the years ahead.