5 Best Tech Stocks to Buy Now According to Joe Dimenna’s Zweig-DiMenna Partners

3. NVIDIA Corporation (NASDAQ:NVDA)

Zweig-DiMenna Partners’ Stake Value: $17,110,000
Zweig-DiMenna Partners’ 13F Portfolio: 2.28%
Number of Hedge Fund Holders: 110

NVIDIA Corporation (NASDAQ:NVDA) delivers graphics, computation, and networking technologies in the United States, Taiwan, China, and globally. On May 3, Morgan Stanley analyst Joseph Moore initiated coverage of NVIDIA Corporation (NASDAQ:NVDA), maintaining an Equal Weight rating and a price objective of $217.

In the first quarter of 2022, Zweig-DiMenna Partners trimmed its position in NVIDIA Corporation (NASDAQ:NVDA) by 57% to 62,705 shares, accounting for 2.28% of the overall portfolio. The fund first bought a stake in NVIDIA Corporation (NASDAQ:NVDA) in the fourth quarter of 2012.

By the end of Q4 2021, the number of hedge funds tracked by Insider Monkey holding stakes in NVIDIA Corporation (NASDAQ:NVDA) grew significantly to 110 from 83 in the previous quarter. The collective stakes in Q4 were valued at $10.49 billion.

In its Q1 2022 investor letter, RiverPark Long/Short Opportunity Fund mentioned NVIDIA Corporation (NASDAQ:NVDA). Here is what the fund said:

“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.

We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”