5 Best-Performing S&P 500 Stocks in the Last 10 Years

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 84

10-Year Share Price Returns as of September 13: 4,080%

NVIDIA Corporation (NASDAQ:NVDA), the American semiconductor giant, is one of the best S&P 500 stocks in terms of historical performance. The shares, as of September 13, have gained 4,080% in the last 10 years. 

On September 9, after NVIDIA Corporation (NASDAQ:NVDA)’s announcement that the state has offered exemptions for the firm to continue the development of its H100 offering in China and continue supporting U.S. customers of A100 through Chinese manufacturers till March 2023, Evercore ISI analyst C.J. Muse said he believes that NVIDIA Corporation (NASDAQ:NVDA) will potentially be able to offset downside risk given alternative product offerings and likely license approval. While he revised down his Q3 revenue predictions by $250 million to de-risk his model from this impact, the analyst thinks the risk/reward at $135 is “extremely attractive for investors with any sort of duration”. He reiterated an Outperform rating and a $225 price target on NVIDIA Corporation (NASDAQ:NVDA) shares.

According to Insider Monkey’s database, 84 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA) at the end of June 2022, down from 102 funds in the earlier quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is a significant stakeholder of the company, with 2.5 million shares worth around $386 million. 

Here is what Baron Fifth Avenue Growth Fund has to say about NVIDIA Corporation (NASDAQ:NVDA)  in its Q2 2022 investor letter:

“At the company-specific level, there was a broad correction across the entire portfolio. While four of our holdings contributed to performance, the contribution to absolute returns was less than 100bps combined, as unfortunately none of them were large enough to move the needle. We had 16 investments detracting over 100bps each with NVIDIA (NASDAQ:NVDA), our second largest detractor, costing the Fund 254bps.

NVIDIA’s stock was hit even harder, down 44.4%, impacted by concerns over the health of the consumer, dramatic declines in crypto, and COVID-related lockdowns in China. Despite the sell-off and the increased near-term volatility in its gaming business, NVIDIA’s revenues grew 46% year-over-year with 48% operating margins, driven by continued strength in its data center business as companies across industries adopt AI and ML…” (Click here to see the full text)