4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 102
NVIDIA Corporation (NASDAQ:NVDA) is one of the best beginner stocks to invest in, given that it is enjoying multiple secular growth drivers in the computing, gaming and data center segments which utilize the firm’s chipsets, processors and graphic cards.
BofA analyst Vivek Arya recently chose NVIDIA Corporation (NASDAQ:NVDA) as his top large-cap semiconductor pick, noting “compelling” valuations in the semi industry. On May 26, Mizuho analyst Vijay Rakesh gave NVDA stock a ‘Buy’ recommendation, noting that the firm retains its leadership in data center and artificial intelligence, positioning it well into 2023. The analyst also sees the “near-term reset” allowing investors a good entry point.
For the first quarter, NVIDIA Corporation (NASDAQ:NVDA) reported $8.29 billion in revenue for the quarter, beating estimates by $194.4 million and growing 46.41% in contrast to the year-ago quarter. EPS for Q1 also beat Street estimates by $0.07.
102 hedge funds were stakeholders in NVIDIA Corporation (NASDAQ:NVDA) at the end of March, with aggregate positions worth $6.35 billion. After a 44% increase in stake, Fisher Asset Management was the largest Q1 shareholder of NVIDIA, with 7.32 million shares worth $1.99 billion.
Here is what RiverPark Funds had to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
