5 Stocks That Will Suffer If China Invades Taiwan

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 102

NVIDIA Corporation (NASDAQ:NVDA) was incorporated in 1993 and is headquartered in Santa Clara, California. The company designs semiconductors and integrated circuits, but does not manufacture them. TSMC manufactures the bulk of NVIDIA Corporation (NASDAQ:NVDA) chips, and with TSMC hit by the Chinese invasion, NVIDIA Corporation (NASDAQ:NVDA) will also suffer as a consequence. 

On July 25, Barclays analyst Blayne Curtis lowered the price target on NVIDIA Corporation (NASDAQ:NVDA) to $200 from $295 and kept an Overweight rating on the shares. The latest semiconductor rally should fade as it is “way too early to buy the dip,” the analyst told investors in a research note. He believes semis are still in for a “substantial reset” and he slashed wafer fab equipment estimates.

Among the hedge funds tracked by Insider Monkey, Phill Gross and Robert Atchinson’s Adage Capital Management is one of the leading stakeholders of NVIDIA Corporation (NASDAQ:NVDA), with 2.5 million shares worth $694.4 million. Overall, 102 hedge funds were bullish on the stock at the end of Q1 2022.

Here is what ClearBridge Large Cap Growth ESG Strategy has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2022 investor letter:

“Chipmaker Nvidia (NASDAQ:NVDA) has also been pressured by multiple compression of higher growth companies and weakness in its gaming business. While Nvidia has grown into a top 10 position with its strong performance through late 2021, we have been consistently trimming the position to derisk against short-term volatility in its gaming business. The company is clearly exposed to the semiconductor cycle but also participates in the secular growth of cloud and AI adoption through its data center business. With these secular drivers intact and new products ramping up in the second half of the year, we are maintaining an overweight to the company.”