5 Best Stocks to Buy for Financial Independence

2. NVIDIA Corporation (NASDAQ: NVDA)

Number of Hedge Fund Holders: 88   

NVIDIA Corporation (NASDAQ: NVDA) is a California-based technology company that markets high-powered hardware for computers, laptops, and other devices. It is placed second on our list of 10 best stocks to buy for financial independence. NVIDIA stock has offered investors returns exceeding 72% over the past year. The company has explosive growth potential as online games increase in popularity, handheld devices become more powerful, and a chip shortage in the industry drives up the prices of the products the firm markets. 

NVIDIA Corporation (NASDAQ: NVDA) stock was given an Outperform rating by investment advisory Baird on May 5 with a price target of $800. The advisory claimed that the company was well placed to dominate the data centre space in the artificial intelligence market.

In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ: NVDA) was one of them. Here is what the fund said:

“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs 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. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”