Billionaire Rob Citrone Is Selling These 5 Stocks

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 102

NVIDIA Corporation (NASDAQ:NVDA) is a California-based semiconductor company. Rob Citrone’s hedge fund owned 10,105 shares of NVIDIA Corporation (NASDAQ:NVDA), worth about $3 million in the fourth quarter of 2021. Discovery Capital Management discarded its stake completely in the first quarter of 2022. 

On July 25, Barclays analyst Blayne Curtis lowered the firm’s 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. The analyst believes semis are still in for a “substantial reset” and he slashed wafer fab equipment estimates.

Among the hedge funds tracked by Insider Monkey, 102 funds were long NVIDIA Corporation (NASDAQ:NVDA) as of the first quarter of 2022, down from 110 funds in the last quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is one of the leading position holders in the company, with 2.5 million shares worth about $694.5 million. 

Here is what RiverPark Long/Short Opportunity Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:

“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.

We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”