Is Nvidia (NVDA) a Great Investment Choice?

ClearBridge Investments, an investment management firm, published its “Large Cap Growth ESG Strategy” second quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Dividend Strategy outperformed its S&P 500 Index benchmark during the second quarter. On an absolute basis, the Strategy had gains in one of the 11 sectors in which it was invested for the quarter: the health care sector. The IT, financials and materials sectors, meanwhile, were the main detractors. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, ClearBridge Large Cap Growth ESG Strategy mentioned NVIDIA Corporation (NASDAQ:NVDA) and explained its insights for the company. Founded in 1993, NVIDIA Corporation (NASDAQ:NVDA) is a Santa Clara, California-based multinational technology company with a $478.8 billion market capitalization. NVIDIA Corporation (NASDAQ:NVDA) delivered a -34.67% return since the beginning of the year, while its 12-month returns are down by -6.89%. The stock closed at $192.15 per share on August 04, 2022.

Here is what ClearBridge Large Cap Growth ESG Strategy has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2022 investor letter:

“Chipmaker Nvidia (NASDAQ:NVDA) has also been pressured by multiple compression of higher growth companies and weakness in its gaming business. While Nvidia has grown into a top 10 position with its strong performance through late 2021, we have been consistently trimming the position to derisk against short-term volatility in its gaming business. The company is clearly exposed to the semiconductor cycle but also participates in the secular growth of cloud and AI adoption through its data center business. With these secular drivers intact and new products ramping up in the second half of the year, we are maintaining an overweight to the company.”

Photo by Javier Esteban on Unsplash

Our calculations show that NVIDIA Corporation (NASDAQ:NVDA) ranks 16th on our list of the 30 Most Popular Stocks Among Hedge Funds. NVIDIA Corporation (NASDAQ:NVDA) was in 102 hedge fund portfolios at the end of the second quarter of 2022, compared to 110 funds in the previous quarter. NVIDIA Corporation (NASDAQ:NVDA) delivered a 1.97% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on NVIDIA Corporation (NASDAQ:NVDA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.