5 Stocks That Will Skyrocket

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 175

Nvidia shares were falling on October 31 amid worries related to new export rules regarding China that can bar US companies from exporting chips to the country. While these rules could affect Nvidia in the short-term, the long-term, AI-driven catalysts for the company remain strong as it is enjoying a near monopoly in the AI industry because of its specialized chips.

As of the end of the second quarter of 2023, 175 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in the company. The biggest stakeholder of the company was GQG Partners of Rajiv Jain which had a stake worth about $6 billion in the company.

Artisan Developing World Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:

“Our focus on scalable business models has its roots in our economic framework. As potential output moderated in most emerging countries, it became clear to us affordability was not improving and that low penetration was necessary but not sufficient for value creation. We eliminated companies from the portfolio that were struggling to generate revenue significantly in excess of fixed costs, often replacing them with passport companies such as NVIDIA Corporation (NASDAQ:NVDA) and Airbnb that were economically tied to emerging markets. Over a period of time, we have been successful in redefining the emerging markets opportunity set around real per capita GDP increases, growth in the middle class, revenue velocity and demand fulfilment. Combined with changes in the market backdrop that have resulted in privileged competitive positions for companies with financial strength and access to capital, we find our opportunity set expanding anew to include companies that are both based in emerging markets and conducive to value creation.”