4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 223
Millennium Management’s Equity Stake: $1.34 Billion
Upside Potential as of April 26: 51.78%
NVIDIA Corporation (NASDAQ:NVDA), a global leader in GPU-accelerated computing, is widely recognized for its groundbreaking work in graphics processing units (GPUs) that power gaming, professional visualization, data centers, and the automotive industry.
For the fourth quarter of fiscal 2025, NVIDIA Corporation (NASDAQ:NVDA) reported record revenue of $39.3 billion, reflecting a 12% increase from the previous quarter and a staggering 78% year-over-year growth. This achievement was largely fueled by the company’s Data Center segment, which alone posted a record $35.6 billion in quarterly revenue, up 16% from Q3 and an impressive 93% increase compared to the previous year. GAAP earnings per diluted share for the quarter were $0.89, representing a 14% sequential rise and an 82% increase year-over-year.
NVIDIA Corporation (NASDAQ:NVDA) has encountered a major challenge in its AI business following new export restrictions imposed by the Trump administration, which now bar the company from selling its H20 AI accelerators in China—a market previously expected to generate around $16 billion in revenue. In response, CEO Jensen Huang visited China to meet with officials, including Ren Hongbin of the China Council for the Promotion of International Trade, to reaffirm NVIDIA’s commitment to the Chinese market despite the regulatory hurdles. Accompanied by DeepSeek founder Liang Wenfeng, a key customer, Huang emphasized that the company will continue its operations in China. However, NVIDIA now faces the urgent task of developing a compliant alternative product while dealing with rising competition from Chinese tech giants like Huawei, who are advancing their own AI systems that could rival NVIDIA’s latest offerings.
Despite external challenges such as energy demands, investor confidence in NVIDIA Corporation (NASDAQ:NVDA) remains robust. The stock carries a current price target of $168.49, with analysts projecting a substantial upside potential of 51.78%. This strong outlook positions NVIDIA as fourth among billionaire Israel Englander’s stock picks with the highest upside potential, reinforcing its continued appeal to investors eager to capitalize on the transformative growth of artificial intelligence and next-generation computing technologies.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 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. Shares contributed to performance during the quarter, driven by strong demand for its data center products, especially the Hopper H200 chips, which generated double-digit billions in revenue, marking the fastest product ramp in the company’s history. Management provided fiscal fourth-quarter revenue guidance above analyst estimates, along with resilient operating margins supported by robust demand and limited competition. In our view, Nvidia’s leadership in scaling AI infrastructure, including advancements in inference and test-time scaling (i.e., reasoning during inference), is driving adoption among enterprises and startups, providing continued demand for its high-performance chips and software solutions. As older-generation chips are repurposed for inference and new clusters are deployed, we believe Nvidia is well-positioned to capitalize on growing compute needs across AI applications.”
