1. NVIDIA Corporation (NASDAQ:NVDA)
Rokos Capital Management’s Stake as of Q4 2024: $291.36 million
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA), a global pioneer in graphics processing and networking, uses its GPUs to dominate the gaming and AI businesses, leading to its more than trillion-dollar value.
On April 17, Stifel analysts maintained their Buy rating and $180 price target on NVIDIA Corporation (NASDAQ:NVDA), in-line with the broader Wall Street consensus, which remained highly favorable on the semiconductor giant. The confirmation came after NVIDIA announced that the US government has imposed new export controls requiring an indefinite license for exporting H20 processors to China, including Hong Kong, Macau, and D5 countries, as well as companies with headquarters or parent companies in those regions. Due to these limits, NVIDIA expects to incur a significant $5.5 billion inventory charge.
NVIDIA Corporation (NASDAQ:NVDA) reported a record full-year revenue of $130.5 billion for fiscal 2025, a 114% increase over the previous year. Non-GAAP diluted EPS was $2.99, up 130% from a year before. Fiscal Q4 2025 was another record quarter for the corporation, with revenues of $39.3 billion, up 12% sequentially and 78% year-over-year.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 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. During the quarter, shares detracted from performance due to several factors. In January 2025, investor concerns grew regarding the emergence of advanced AI models from China, reportedly developed at lower costs and with reduced computing requirements, raising doubts about Nvidia’s market dominance. Additionally, U.S. President Donald Trump’s announcement of new tariffs targeting industries increased worries about higher operational costs. Despite these headwinds, Nvidia reported robust fiscal fourth-quarter results, highlighted by significant revenue growth driven by its data center segment. On the earnings call, CEO Jensen Huang emphasized the increasing computational requirements of future AI models, noting, “The more computation, the more the model thinks, the smarter the answer,” and adding that future reasoning models could demand substantially more compute resources. We believe Nvidia’s leadership in scaling AI infrastructure—including advancements in inference and reasoning during inference—continues to drive adoption among enterprises and startups, ensuring sustained demand for its high performance chips and software solutions. As older-generation chips are repurposed and new clusters deployed, we see Nvidia as well-positioned to capitalize on rising computational needs across AI applications.”
While we acknowledge the potential for NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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