Below we take a look at why Jim Cramer and Billionaire Ken Fisher Love These 5 Stocks. For our methodology and a more comprehensive list please see Jim Cramer and Billionaire Ken Fisher Love These 10 Stocks.
5. NVIDIA Corporation (NASDAQ:NVDA)
Value of Fisher Asset Management’s 13F Position: $3.46 billion
Number of Hedge Fund Shareholders: 178
NVIDIA Corporation (NASDAQ:NVDA) ranks fifth on the this list as the 6th largest holding in Ken Fisher’s 13F portfolio in addition to being a stock that Jim Cramer really likes. Fisher has owned Nvidia since the final quarter of 2017, during which time the shares have skyrocketed by about 900%, putting them in ten bagger territory. Hedge funds as a whole are going crazy for Nvidia right now, as smart money ownership of the stock has doubled just in the last three quarters.
Jim Cramer’s Charitable Trust portfolio has owned NVIDIA Corporation (NASDAQ:NVDA) for a long time and the CNBC analyst and former hedge fund manager still likes the stock, though he cautioned viewers in August that he’s not necessarily saying to buy the stock at current (at the time) prices, given their rapid rise this year. Nonetheless, he’s extremely bullish on the company’s opportunity in AI, calling their new chip a “super-super brain”.
Saltlight Capital noted that NVIDIA Corporation (NASDAQ:NVDA) may have lost one of its competitive advantages in the fund’s second quarter 2023 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) has become the de-facto AI name in the market (rightly so) and has delivered a remarkable performance for us. We have been gradually trimming our investment to, what we call, an ‘optionality’ size position as the stock price has dramatically gone up. Conditions are chalk and cheese to when we first purchased our investment.
Recent news makes us think twice: PyTorch 2.0, the machine learning framework recently announced support for AMD GPUs which is a negative for NVIDIA.
For many readers, this may be getting into the weeds but in our May 2021 letter, we discussed one aspect of NVIDIA’s competitive edge – its proprietary CUDA software. Operating as the interface between their GPUs and machine learning (ML) libraries, CUDA has become the standard layer in the AI stack to enable parallelised processing, a critical function for complex neural network models. Competing, cheaper, GPUs with inferior working libraries struggled to gain meaningful traction because the early versions of machine learning libraries (PyTorch and TensorFlow) did not directly interface with them. This created friction for developers and effectively blocked cheaper competitor GPUs from handling machine learning workloads….” (Click here to read the full text)
