5 Best Semiconductor Stocks To Invest In Right Now

2. NVIDIA Corporation (NASDAQ: NVDA)

Number of Hedge Fund Holders: 80

California-based chipmaker NVIDIA Corporation (NASDAQ: NVDA) ranks 2nd on the list of 12 best semiconductor stocks to invest in right now. The company sells graphic cards for gaming and high-performance computers used in data centers and cryptocurrency mining. NVIDIA Corporation (NASDAQ: NVDA) also develops microchips for automotive platforms used in infotainment systems and cloud computing. The company pays an annualized dividend of $0.16 per share and offers a dividend yield of 0.08%.

On August 4, Rosenblatt analyst Hans Mosesmann maintained a Buy rating on NVIDIA Corporation (NASDAQ: NVDA) and raised the firm’s price target to $250 per share from $200, implying earnings power of more than $6.00 per share in FY24. Shares of NVIDIA Corporation (NASDAQ: NVDA) jumped 2.2% following analyst’s bullish sentiment. 

The company has a market cap of $503 billion. In the first quarter of 2021, NVIDIA Corporation (NASDAQ: NVDA) reported an EPS of $0.92, beating estimates by $0.09. The company’s revenue grew 84% year over year to $5.66 billion, beating revenue estimates by $252.24 million. The stock has gained 55%, year to date.

At the end of the first quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $6.20 billion in NVIDIA Corporation (NASDAQ: NVDA), down from 88 in the previous quarter worth $8.69 billion. 

In its Q2 2021 investor letter, Vulcan Value Partners mentioned NVIDIA Corporation (NASDAQ: NVDA) and discussed its stance on the firm. Here is what the fund said:

“NVIDIA Corp. was a material contributor during the quarter. NVIDIA’s products are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. The company continues to execute well, and its value continues to compound rapidly.”