5 Stocks That Will Profit From AI Evolution

3. NVIDIA Corporation (NASDAQ:NVDA) 

Number of Hedge Fund Holders: 173     

NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. The powerful chips manufactured by the company are world leaders in terms of their computing ability. Businesses using AI products necessarily need the speed, power, and efficiency offered by NVIDIA Corporation (NASDAQ:NVDA) products. On March 7, investment advisory Mizuho maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) stock and raised the price target to $1,000 from $850.

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Citadel Investment Group is a leading shareholder in NVIDIA Corporation (NASDAQ:NVDA) with 15.4 million shares worth more than $7.6 billion.  

In its Q4 2023 investor letter, Fred Alger Management, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:

“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super- computing parallel processing techniques for solving complex computational problems. Simply put, Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. During the period, shares contributed to performance as Nvidia reported solid fiscal third quarter results well above analyst expectations, driven by strong demand from data centers. Growing Al data center workloads are driving demand for the increased interconnections and fully accelerated software stacks, thereby enabling leading application performance and fast result times.”