5 Stocks That Will Own the Metaverse

Below we present the list of 5 Stocks That Will Own the Metaverse. For our methodology and a more comprehensive list please see 10 Stocks That Will Own the Metaverse.

5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Shareholders: 84

The second half of the list kicks off with another prominent chipmaker, NVIDIA Corporation (NASDAQ:NVDA), the world’s leading GPU maker. Nvidia is partnering with Pixar, Adobe, Siemens, and other companies to expand Pixar’s Universal Scene Description (USD) into a 3D platform that can support industrial metaverse applications related to architecture, engineering, robotics, and manufacturing.

Nvidia’s Omniverse platform, which is based on USD, allows developers to simulate large scale worlds that can be used to test ideas, train AI, and perform virtual testing through the use of digital twins. Ericsson is one of many leading companies that use the Omniverse platform, in its case to optimize the deployment of 5G, another field that Qualcomm is a major player in.

Hedge fund ownership of NVIDIA Corporation (NASDAQ:NVDA) is down by 24% over the past two quarters after soaring in the fourth quarter of 2021. It remains relatively in line with smart money ownership of the stock over the past three years. Ken Fisher’s Fisher Asset Management owns a $1.15 billion stake in Nvidia as of June 30, holding 7.59 million shares of the company in its 13F portfolio.

The Baron Fifth Avenue Growth Fund shared some of the investor concerns around NVIDIA Corporation (NASDAQ:NVDA), as well as outlining the company’s ongoing strengths in its Q2 2022 investor letter:

“At the company-specific level, there was a broad correction across the entire portfolio. While four of our holdings contributed to performance, the contribution to absolute returns was less than 100bps combined, as unfortunately none of them were large enough to move the needle. We had 16 investments detracting over 100bps each with NVIDIA (NASDAQ:NVDA), our second largest detractor, costing the Fund 254bps.

NVIDIA’s stock was hit even harder, down 44.4%, impacted by concerns over the health of the consumer, dramatic declines in crypto, and COVID-related lockdowns in China. Despite the sell-off and the increased near-term volatility in its gaming business, NVIDIA’s revenues grew 46% year-over-year with 48% operating margins, driven by continued strength in its data center business as companies across industries adopt AI and ML…” (Click here to see the full text)