5 Semiconductor Stocks to Watch as Uncertainty Grows

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 84

NVIDIA Corporation (NASDAQ:NVDA) is among the world’s leading graphics card manufacturers, and its biggest end markets include gaming, data centers, and artificial intelligence. On August 25, the company slashed its guidance and said that it expects third-quarter revenue for fiscal 2022 to amount to $5.9 billion, below analyst expectations of $6.92 billion. The company sees a declining demand for GPUs used in gaming and mining crypto. The company’s gaming revenue declined by 44% in the fiscal second quarter of 2023. NVIDIA Corporation (NASDAQ:NVDA) reported that its inventory during the quarter amounted to $3.89 billion, up from $2.11 billion in the second quarter of fiscal 2022. The company plans to reduce the prices of its GPUs to reduce its excess inventory as we move into the back half of 2022.

Wall Street is bearish on NVIDIA Corporation (NASDAQ:NVDA) as the company “did not have a better understanding of the channel inventory level”. On September 2, Daiwa analyst Louis Miscioscia downgraded NVIDIA Corporation (NASDAQ:NVDA) to Neutral from Outperform and slashed his price target to $133 from $215.

At the close of Q2 2022, 84 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA) and held stakes worth $3.31 billion in the company. This is compared to 102 positions in the previous quarter with stakes worth $6.35 billion. The hedge fund sentiment for the stock is negative.

As of June 30, Fisher Asset Management owns roughly 7.6 million shares of NVIDIA Corporation (NASDAQ:NVDA) and is the largest shareholder in the company. The investment covers 0.81% of Ken Fisher’s 13F portfolio.