Goldman Sachs Tech Stocks: Top 5 Stock Picks

4. NVIDIA Corporation (NASDAQ:NVDA)

Goldman Sachs’ Stake Value: $4,284,591,989

Number of Hedge Fund Holders: 132

NVIDIA Corporation (NASDAQ:NVDA) is a market leader in the provision of graphics, commuting, semiconductors, and networking solutions. At the end of Q1 2023, Goldman Sachs held a position worth $4.28 billion in NVIDIA Corporation (NASDAQ:NVDA). It is one of the top Goldman Sachs tech stocks. 

On August 9, Citi analyst Atif Malik maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) with a price target of $560. Malik wrote in a research note to investors: 

“This falls in line with our expectations that NVIDIA will provide new versions of its AI accelerators with higher bandwidth and capacity given AMD’s strategy to offer more in-chip memory in its upcoming MI300 GPUs than the H100.”

According to Insider Monkey’s first quarter database, 132 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), as opposed to 106 hedge funds in the last quarter. Rajiv Jain’s GQG Partners is one of the leading shareholders in the company, with 8.2 million shares valued at $2.29 billion. 

Polen Focus Growth Strategy stated this about NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2023 investor letter:

NVIDIA Corporation (NASDAQ:NVDA) was the largest relative headwind to the Portfolio as we do not own this “AI darling.” NVIDIA shares rose more than 50% in the second quarter alone, following a 90% increase in the share price in the first quarter of 2023. NVIDIA supplies GPUs (graphics processing units), the preferred (often necessary) semiconductors for machine learning and AI. On their recent earnings call, NVIDIA management announced that they expect a significant increase in demand for the GPUs for datacenter customers beginning this quarter and lasting at least through the end of this year. NVIDIA’s datacenter business, which was almost non-existent from a revenue perspective eight years ago, is now the company’s largest and fastest-growing business.

We find NVIDIA’s competitive advantages to be quite large around its technology, but even more importantly around its full-stack solutions, including highly integrated hardware, software, and networking equipment and a robust developer ecosystem. It would be difficult to disrupt these competitive advantages in our view. That said, with a greater than $1 trillion valuation on the back of what feels like peak-level AI exuberance since OpenAI’s breakthrough with ChatGPT, we believe virtually all the upside opportunities we can currently see for the company are already priced in…” (Click here to read the full text)