1. NVIDIA Corporation (NASDAQ:NVDA)
5-Year Sales Growth: 64.24%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is a leading international technology company specializing in graphics processing units and sophisticated computer infrastructure. The company’s GPUs and software applications are powering the AI revolution around the world.
On May 8, DBS analyst Fang Boon Foo maintained a Buy rating on the stock. The analyst highlighted the dominant market position of NVIDIA Corporation (NASDAQ:NVDA), particularly noting its high-end GPUs. Foo noted that the company differentiates on the back of its innovative approach to annually upgrading its AI accelerators, with the upcoming Blackwell chips set to replace the current Hopper generation. Moreover, its fundamentals remain strong, demonstrated by record year-over-year growth and a robust demand for its products.
During the fiscal fourth quarter of 2025, NVIDIA Corporation (NASDAQ:NVDA) reported a quarterly revenue of $39.3 billion, up 12% from Q3 and up 78% from a year ago. The Data Center segment again posted a record quarterly revenue of $35.6 billion, reflecting a 93% increase year-over-year. The company ranks as the best growth stock to buy and hold for the long term.
Ithaka US Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is the undisputed leader in accelerated computing, with dominant market share in Graphics Processing Units (GPUs) powering AI workloads across data centers, edge devices, and emerging platforms. Its end-to-end ecosystem—from silicon to software (CUDA, networking, and AI frameworks)—creates high switching costs and a widening competitive moat. With secular demand for AI infrastructure still in its early innings, Nvidia stands to benefit from sustained topline growth and strong operating leverage. In early January, a little known Chinese AI company, DeepSeek, released its large language model (LLM), DeepSeek-R1, to an unexpecting world. This model was purportedly trained on very few high-end Nvidia chips and was highly efficient when compared to other leading models. This release set off a chain reaction where investors have had to grapple with the idea that the world may not need as many GPUs as previously thought, which hampered the Nvidia buy case and sent the P/E multiple down to its cheapest level in the past 5 years.”
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that 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 that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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