1. Nvidia Corp (NASDAQ:NVDA)
Billionaire Ken Fisher’s Stake: $16.05 billion
Tech companies continue to increase their AI spending plans, chip demand is rising and yet the market seems to have gone numb to the positive news cycle for Nvidia Corp (NASDAQ:NVDA) when it comes to the stock price. Nvidia shares are down about 4.5% over the past six months. But Nvidia Corp (NASDAQ:NVDA) bulls believe the stock is still a good buy for the long term and will rebound once the geopolitical tensions and AI bubble fears recede. How?
Nvidia Corp (NASDAQ:NVDA) chip demand can continue to rise due to its new Vera Rubin (R100) architecture, which is optimized for agentic AI. Companies are moving from simply training models to running them at scale, which supports Nvidia’s expectation that its data center revenue could hit $1 trillion.
Some believe Nvidia’s Corp (NASDAQ:NVDA) valuation has finally become attractive for long-term investors to move in. The stock has a forward P/E of roughly 20x to 22x, almost in line with that of the S&P 500. According to Goldman estimates, Nvidia is expected to drive 21% of the total earnings growth for the S&P 500 in 2026. With Big Tech companies expected to spend a whopping $600 billion on capital expenditures in 2026 alone and new AI use cases coming, Nvidia Corp (NASDAQ:NVDA) remains an attractive buy at the current levels.
Baron Opportunity Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2025 investor letter:
“At Baron, we are deep research, evidence-based investors. We are positive about AI because it is real. It is the most significant change to the global economy since the internet itself. Every digital interaction of today forward will have AI as the brains of the application. We have investments across all the layers of the AI stack and spanning industries. Our most successful investments to date have been in the infrastructure or compute layer. We were early investors in NVIDIA Corporation (NASDAQ:NVDA), over four years before the ChapGPT moment of November 2022, and it has been more than a 10-bagger for the Fund. Several of us spent a full day with founder and CEO Jensen Huang in the Fall of 2018, where he went to the white board to teach us about AI and why NVIDIA would win.”
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
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