5 Best Investments for Beginners

In this article, we will take a look at the 5 best investments for beginners. To see more such companies, go directly to 11 Best Investments for Beginners.

5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 175

NVIDIA Corporation (NASDAQ:NVDA) hardly needs any mention of growth catalysts that are expected to boost the stock price in the coming months and years. NVIDIA Corporation (NASDAQ:NVDA) has become a symbol of the AI boom that is just getting started.

As of the end of the second quarter 175 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in NVIDIA Corporation (NASDAQ:NVDA).

According to Yahoo Finance data, NVIDIA Corporation (NASDAQ:NVDA)’s one-year average price estimate is $584, which shows huge upside potential from the current levels.

Harding Loevner Global Equity Strategy made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2023 investor letter:

NVIDIA Corporation (NASDAQ:NVDA) has been the biggest beneficiary this year in terms of its stock run and projected revenue gains. More companies- including, perhaps, some not yet in existence-will certainly join the ranks over time.

In the meantime, NVIDIA has emerged as the unrivaled global leader in providing the technologies at the center of the Al arms race. NVIDIA’s competitive advantage is the result of investments that began two decades ago, when it recognized an early opportunity to repurpose its video-game graphics chips for the heavy-load computing done in scientific research. This led management to expand the GPU business. It also spent years and significant resources developing a free software platform that’s exclusive to its chips called CUDA that allows developers to easily program its GPUs for a variety of computationally intensive applications. Researchers then began using both NVIDIA’s chips and CUDA to train the human-brain-inspired neural networks that power Al models.

Now, due to an explosion of demand related to generative Al and LLMs from across its customer base, NVIDIA projects that data-center revenue for its fiscal second quarter ending in July will surge to US$11 billion. Not only is that more than double last quarter’s total, but the forecast also shattered the average analyst estimate that called for about US$7 billion. Taking advantage of the stock’s meteoric rise, we reduced our holding (it has risen tenfold since we first purchased in 2018)…” (Click here to read the full text)