13 Best Performing NASDAQ Stocks According to Hedge Funds

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1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 235

Market Capitalization: $4.56 trillion

Year-To-Date Performance: 39.71%

NVIDIA Corporation (NASDAQ:NVDA) is one of the best performing NASDAQ stocks according to hedge funds. On October 6, Goldman Sachs raised its price target for NVIDIA from $200 to $210, maintaining a Buy recommendation. The upgrade follows NVIDIA’s accelerated growth in AI-related revenues and robust partnerships, particularly with companies like OpenAI and other strategic collaborators.

Goldman Sachs forecasts short-term strength in NVIDIA’s fundamentals, driven by growth both from hyperscalers and traditional clients. The analyst, James Schneider, credits NVIDIA’s investments and collaborations for building “substantial upside” to 2026 estimates. These include infrastructure expansions and unconventional buyers entering the market, and partnerships with OpenAI.

The bank expects the new Blackwell chip rollout and increased hyperscaler spending to further boost market momentum into next year. Its valuation model maintains a P/E multiple of 35x on updated earnings per share (EPS) projections.

However, Analyst Schneider cautioned about “circular revenue” risk, where NVIDIA’s investments in partners (like OpenAI) may loop back as sales, artificially boosting top-line growth. This dual role (supplier and investor) may require investors to look more closely at how much of the demand is driven by outside funding rather than NVIDIA’s own capital.

NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), as well as accelerated computing platforms and networking solutions. It operates through two main segments: Graphics and Compute & Networking. NVIDIA also develops software such as CUDA for parallel computing and Omniverse for 3D simulation and digital twins. Its main offerings are GPUs, AI computing platforms, and software ecosystems that support gaming, data centers, and automotive applications.

While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

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