1. NVIDIA Corporation (NASDAQ:NVDA)
AQR Capital Management’s Q4 Stake: $2.19 billion
Upside Potential as of April 26: 53.67%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA), a global leader in graphics processing and networking, leverages its GPUs to dominate the gaming and artificial intelligence industries, leading to its more than trillion-dollar valuation.
NVIDIA Corporation (NASDAQ:NVDA) reported a record full-year revenue of $130.5 billion for fiscal 2025, up 114% from the previous year. Non-GAAP diluted EPS was $2.99, a 130% increase from the year prior. Fiscal Q4 2025 was another record quarter for the company, with revenues of $39.3 billion, up 12% sequentially and 78% year-over-year.
On April 16, Stifel analysts reaffirmed their Buy rating on NVIDIA Corporation (NASDAQ:NVDA) with a $180 price target, despite the company’s massive charge due to new US export limitations. NVIDIA revealed that it will suffer a $5.5 billion inventory charge due to the requirement for an indefinite license to export H20 processors to China, which encompasses Hong Kong, Macau, and D:5 nations, as well as corporations with headquarters or parent companies in those areas. The new developments have added to the uncertainty in an already volatile market. However, Stifel analysts feel that NVIDIA’s long-term future outlook remains solid.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:
“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. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. During the quarter, shares detracted from performance due to several factors. In January 2025, investor concerns grew regarding the emergence of advanced AI models from China, reportedly developed at lower costs and with reduced computing requirements, raising doubts about Nvidia’s market dominance. Additionally, U.S. President Donald Trump’s announcement of new tariffs targeting industries increased worries about higher operational costs. Despite these headwinds, Nvidia reported robust fiscal fourth-quarter results, highlighted by significant revenue growth driven by its data center segment. On the earnings call, CEO Jensen Huang emphasized the increasing computational requirements of future AI models, noting, “The more computation, the more the model thinks, the smarter the answer,” and adding that future reasoning models could demand substantially more compute resources. We believe Nvidia’s leadership in scaling AI infrastructure—including advancements in inference and reasoning during inference—continues to drive adoption among enterprises and startups, ensuring sustained demand for its high performance chips and software solutions. As older-generation chips are repurposed and new clusters deployed, we see Nvidia as well-positioned to capitalize on rising computational needs across AI applications.”
While we acknowledge the potential for NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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