In this article, we discuss the 5 stocks Reddit’s WallStreetBets is buying in July 2021. If you want to read our detailed analysis of these stocks, go directly to the 10 Stocks Reddit’s WallStreetBets is Buying in July 2021.
5. NVIDIA Corporation (NASDAQ: NVDA)
Number of Hedge Fund Holders: 80
NVIDIA Corporation (NASDAQ: NVDA) is ranked fifth on our list of 10 stocks Reddit’s WallStreetBets is buying in July 2021. The company’s shares have returned more than 110% to investors in the past year. The firm makes and sells visual computing hardware. On June 28, the company announced that it would be partnering with internet search engine Google to set up an artificial intelligence laboratory that would focus on innovations related to 5G networks. The lab would use Google software and NVIDIA hardware.
On July 1, investment advisory BMO maintained an Outperform rating on NVIDIA Corporation (NASDAQ: NVDA) stock and assigned the firm a price target of $1,000. Ambrish Srivastava, an analyst at the firm, noted the data centre business of the firm in a bullish analysis.
At the end of the first quarter of 2021, 80 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in NVIDIA Corporation (NASDAQ: NVDA), down from 88 the preceding quarter worth $8.6 billion.
“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.”