We recently compiled a list of the Louis Navellier’s Top 15 Long-Term Stock Picks. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other stocks.
Louis Navellier is a prominent American investor, author, and financial analyst, best known for his quantitative approach to stock selection and his long-standing track record in the investment industry. As the founder and chairman of Navellier & Associates, a private investment management firm, he has built a reputation for identifying high-growth stocks with significant upside potential. Navellier’s approach blends rigorous quantitative analysis with a focus on fundamental factors, positioning him as a leading voice in growth investing.
Born in 1957, Navellier developed an early interest in the stock market. He honed his analytical skills while studying at California State University, where he earned a Bachelor’s degree in Finance. It was during his college years that Navellier discovered his passion for quantitative analysis, developing a stock-picking system as part of a class project. This project laid the foundation for his career, as he created a system to identify market-beating stocks using specific growth and valuation criteria.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
In 1980, Navellier founded Navellier & Associates, which has grown into a respected investment management firm catering to high-net-worth individuals and institutional clients. Over the years, the firm has managed billions of dollars in assets, applying Navellier’s quantitative methodology to identify outperforming stocks. Navellier is also widely known for publishing the Navellier Growth newsletter, where he shares stock recommendations and insights into market trends. In his newsletter-based recommendations, many stocks have achieved annualized returns exceeding 20% during high-growth market periods.
Navellier’s approach focuses on finding stocks that exhibit strong growth characteristics while maintaining sound fundamentals. He relies heavily on quantitative analysis, utilizing algorithms and statistical models to screen for stocks with high revenue and earnings growth, solid profit margins, and favorable valuation metrics. Unlike many value investors who prioritize underpriced securities, Navellier embraces growth investing, emphasizing companies with strong momentum and the potential for rapid expansion. This strategy often leads him to sectors like technology, healthcare, and consumer goods.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected stocks by combing through the 13F portfolio of Navellier & Associates at the end of the third quarter of 2024. Only the companies that have been in the 13F portfolio of the fund consistently for the past three years were selected. These stocks are also popular among other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
Navellier & Associates’ Stake: $67.3 million
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. There are multiple factors grabbing investors’ attention in the stock, such as its robust financial performance, innovative tech projects, and technological advancements, adapting to the current modern needs of the world. For instance, as per the report of the third quarter of 2024, the total revenue reported was $35.1 billion, up 17% from the previous quarter and up 94% from the previous year. This high growth is driven by the demand for the Hopper computing platform, which is necessary for all AI applications. Subsequently, there was also a 15% rise in gaming revenue, which also played its part in boosting sales of GeForce RTX 40 Series GPUs. Moreover, NVIDIA Corp has announced the project DIGITS, a personal AI supercomputer powered by the GB10 Grace Blackwell Superchip, capable of providing generative models with up to 200 billion parameters. With AI advancement, such projects can offer growth potential and long-term value for investors.
Overall NVDA ranks 1st on our list of Louis Navellier’s top long-term stock picks. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.