7. Nvidia (NASDAQ:NVDA)
Harvard’s Stake: $129,717,150
Nvidia (NASDAQ:NVDA) has become a near-consensus AI stock pick among elite hedge funds and institutional investors — and for good reason. The company is the undisputed leader in the AI revolution, with its order backlog projecting roughly $1 trillion in revenue by 2027. But Nvidia is far more than a chip seller. It sells complete supercomputer racks, acquired Mellanox for $7 billion to optimize data transfer between chips, maintains the dominant CUDA software library that locks customers into its ecosystem due to the sheer complexity of switching, and runs an annual GPU refresh cycle that keeps competitors perpetually behind.
The Rubin architecture — the successor to Blackwell — is expected to further extend Nvidia’s (NASDAQ:NVDA) performance-per-watt lead and drive another wave of upgrade demand from hyperscalers and enterprises already deep in the CUDA ecosystem, potentially adding a significant new revenue uplift cycle.
Robotics represents another compelling long-term growth catalyst. Demand for GPUs from engineers training humanoid robots is accelerating, and Nvidia (NASDAQ:NVDA) has made its ambitions clear by unveiling its own humanoid robot built on the Nvidia Jetson Thor platform.
Perhaps the boldest strategic move recently, however, is Nvidia’s entry into the PC CPU market with its RTX Spark chips. The PC market has historically been a stable, high-volume segment dominated entirely by the Intel-AMD duopoly — but that duopoly is now under threat. RTX Spark would give Nvidia (NASDAQ:NVDA) control of the full hardware stack — CPU, GPU, and NPU — eliminating the need to share profits with Intel or AMD and maximizing margins. It also mirrors Apple’s successful transition away from x86 to ARM-based chips, which delivered superior performance and efficiency. Crucially, this move provides a powerful buffer against any potential slowdown in hyperscaler CapEx spending, diversifying Nvidia’s (NASDAQ:NVDA) revenue base into a market with very different and more predictable demand cycles.
Eagle Point Capital stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2026 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is beloved by investors because it dominates the cutting edge of their industries. But the technology in its field is changing rapidly. It is unclear if it will be able to change with it. They must continuously disrupt and reinvent themselves before their competitors do. The odds are that eventually they’ll stumble. No one bats one thousand forever. History is littered with companies, like Intel, that looked dominant but could not adapt as their environment changed.”
