Here is What Hedge Funds Think About NVIDIA Corporation (NVDA)

As industrywide interest jumped, key money managers were leading the bulls’ herd. Millennium Management, managed by Israel Englander, initiated the largest position in NVIDIA Corporation (NASDAQ:NVDA). Millennium Management had $49.2 million invested in the company at the end of the quarter. Alex Sacerdote’s Whale Rock Capital Management also initiated a $17.9 million position during the quarter. The following funds were also among the new NVDA investors: Daniel S. Och’s OZ Management, Columbus Circle Investors, and Daniel S. Och’s OZ Management.

Let’s now review hedge fund activity in other stocks similar to NVIDIA Corporation (NASDAQ:NVDA). These stocks are FirstEnergy Corp. (NYSE:FE), Workday Inc (NYSE:WDAY), Red Hat, Inc. (NYSE:RHT), and Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH). This group of stocks’ market values resemble NVDA’s market value.

As you can see these stocks had an average of 32.75 hedge funds with bullish positions and the average amount invested in these stocks was $719 million. That figure was $456 million in NVDA’s case. Red Hat, Inc. (NYSE:RHT) is the most popular stock in this table. On the other hand FirstEnergy Corp. (NYSE:FE) is the least popular one with only 24 bullish hedge fund positions. NVIDIA Corporation (NASDAQ:NVDA) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RHT might be a better candidate to consider a long position.