5 Best Space Stocks to Buy According to Hedge Funds

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 84

NVIDIA Corporation (NASDAQ:NVDA) is an American semiconductor designer and seller that is responsible for selling products that are used in a wide variety of applications such as product design, video gaming, personal computing, and cloud computing. The firm is headquartered in Santa Clara, California.

NVIDIA Corporation (NASDAQ:NVDA) plays a key role in both aerospace manufacturing and planning, as its graphics processing units (GPUs) are among the most powerful in the world. A whopping 3,312 NVIDIA V100 Tensor Core GPUs are used by NASA to run countless simulations for retro-propulsive crewed Mars landers. These simulations study the effects of firing the lander’s engine in the opposite direction to slow down its speed as it lands.

As if 3,312 GPUs weren’t enough, the Department of Energy’s Summit Supercomputer which uses a whopping 27,000 A100s is simulating the mixing of propellant and oxidizer in a rocket engine to improve combustion efficiency. By the end of this year’s second quarter, 84 out of the 895 hedge funds polled by Insider Monkey had owned NVIDIA Corporation (NASDAQ:NVDA)’s shares.

NVIDIA Corporation (NASDAQ:NVDA)’s largest investor in our database is Ken Fisher’s Fisher Asset Management which owns 7.5 million shares that are worth $1 billion.

Baron Funds mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“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)