5 Best Falling Stocks To Buy Now

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 102

Year-to-Date Share Price Decline (as of August 9): 43.37%

NVIDIA Corporation (NASDAQ:NVDA) is a prominent maker of semiconductor chips serving the gaming, data center and cloud computing markets around the world. The company is yet another prominent, long-term beneficiary of the $52 billion CHIPS Act passed by the US government, which aims to bolster local production of critical semiconductor technology.

Of the 900+ hedge funds tracked by Insider Monkey, 102 were found with NVIDIA Corporation (NASDAQ:NVDA) stock in their portfolios at the end of the first quarter. The collective value of these positions stood at $6.35 billion. Disruptive tech investor Cathie Wood’s ARK Investment Management significantly increased its exposure to NVDA recently, and stands as a prominent Q2 investor with a $126 million stake.

On August 9, Truist analyst William Stein recently reiterated a ‘Buy’ rating on NVDA shares, and lowered the price target to $216 from $283. The company posted a negative Q2 pre-announcement, and the analyst notes that weakness in the gaming sector may persist into the third quarter before recovering by April 2023. Stein observed that the miss in the AI and data center segments was related to supply chain issues, and sees overall demand remaining constructive.

Here is what ClearBridge Investments had to say about about the performance and market position of NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2022 investor letter:

“Chipmaker Nvidia (NASDAQ:NVDA) has also been pressured by multiple compression of higher growth companies and weakness in its gaming business. While Nvidia has grown into a top 10 position with its strong performance through late 2021, we have been consistently trimming the position to derisk against short-term volatility in its gaming business. The company is clearly exposed to the semiconductor cycle but also participates in the secular growth of cloud and AI adoption through its data center business. With these secular drivers intact and new products ramping up in the second half of the year, we are maintaining an overweight to the company.”