Billionaire Quants’ Two Sigma’s 10 Stock Picks with Huge Upside Potential

3. NVIDIA Corporation (NASDAQ:NVDA)

Two Sigma Advisors Stake Value: $1,230,861,853

Upside Potential as of May 8: 40.30%

Number of Hedge Fund Holders: 223

NVIDIA Corporation (NASDAQ:NVDA) is the world’s leading designer of graphics processing units (GPUs) and the dominant provider of chips powering the AI revolution. The company’s products span gaming, professional visualization, data centers, and automotive markets.

The semiconductor giant, currently valued at $2.86 trillion (May 8, 2025), is reeling from the effects of the ongoing trade restrictions. On May 6, 2025, CEO Jensen Huang expressed concerns about being locked out of China’s AI market. He estimated that the market could reach $50 billion in the next two to three years and that it’s a “tremendous loss” missing out on it. Last month, the Trump administration restricted the shipment of NVIDIA Corporation’s (NASDAQ:NVDA) H20 chips to China without a license, leading to a $5.5 billion quarterly charge.

Adding to the complexity, on May 7, 2025, Bloomberg reported that the Trump administration plans to rescind some Biden-era AI chip curbs. However, the government will maintain measures targeting China, potentially reshaping global semiconductor trade restrictions. Despite these headwinds, institutional investors continue to show strong interest in NVIDIA Corporation (NASDAQ:NVDA). ARK Invest recently purchased 107,661 shares valued at $12,223,829.

On May 5, 2025, Piper Sandler reaffirmed its Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) stock, maintaining a $150.00 price target. The firm cited a sensitivity analysis that it did on NVIDIA’s (NASDAQ:NVDA) data center revenues to assess the potential impacts of a capital expenditure slowdown. It found that approximately 6.45% of the company’s total data center revenue could be at risk, potentially affecting earnings per share by roughly $0.40.