1. NVIDIA (NASDAQ:NVDA)
Ken Griffin’s Stake Value: $4,020,832,390
Despite bubble fears, NVIDIA (NASDAQ:NVDA) continues to see strong demand for its AI chips thanks to its industry dominance. In Q4, its revenue rose 75% year over year while its Q1 revenue guidance beat the Street’s estimates by $5 billion and indicated growth of about 77%.
AI CapEx concerns has spooked Wall Street, but in the real world, AI demand shows no signs of slowing down, and bulls believe NVIDIA (NASDAQ:NVDA) will keep benefiting from this trend for several years. Tech giants are projected to spend $600–700 billion on AI data centers in 2026 alone. How does that benefit NVIDIA (NASDAQ:NVDA)? Nvidia captures approximately 90% of AI accelerator spend. The company dominates about 85% of the AI chip market. Despite the rise of the custom chips market, demand for NVIDIA (NASDAQ:NVDA) chips won’t slow down anytime soon because the total market is expanding faster than any share decline.
But sooner or later the hardware demand will slow down. What then? NVIDIA (NASDAQ:NVDA) is quietly building a software business that most investors aren’t pricing in at all. The NVIDIA AI Enterprise software suite could command 80%+ margins and reach $10 billion in revenue by 2027. Beyond that, physical AI like robotics, autonomous vehicles, and humanoid manufacturing is an entirely new hardware cycle that hasn’t meaningfully started yet.
Baron Opportunity Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2025 investor letter:
“At Baron, we are deep research, evidence-based investors. We are positive about AI because it is real. It is the most significant change to the global economy since the internet itself. Every digital interaction of today forward will have AI as the brains of the application. We have investments across all the layers of the AI stack and spanning industries. Our most successful investments to date have been in the infrastructure or compute layer. We were early investors in NVIDIA Corporation (NASDAQ:NVDA), over four years before the ChapGPT moment of November 2022, and it has been more than a 10-bagger for the Fund. Several of us spent a full day with founder and CEO Jensen Huang in the Fall of 2018, where he went to the white board to teach us about AI and why NVIDIA would win.”
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
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