We recently published a list of Billionaire Louis Bacon’s 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other stock picks with huge upside potential.
Louis Moore Bacon is the founder, Chairman, and principal investment manager of Moore Capital Management, a global investment management firm that provides services to institutional and high-net-worth clients through diversified hedge funds and specialized funds that focus on global fixed-income and emerging markets. It was established in March 1989 and is headquartered in New York City with offices in London and Hong Kong. He holds an MBA in Finance from Columbia Business School and a BA in American Literature from Middlebury College. Bacon’s investment philosophy is based on risk management and capital preservation principles. His trading strategies are focused on macroeconomic trends and fundamental analysis of the markets.
Bacon emphasizes diversification, which allows him to invest across different geographies and asset classes. He is known for his contrarian investment style and takes positions against prevailing market sentiment. Moore Capital Management is a hedge fund with 4 clients and discretionary assets under management (AUM) of $33.20 billion, as reported in the firm’s Form ADV dated 19 November 2024. Their last reported 13F filing for Q4 2024 included $8.70 billion in managed 13F securities and a top 10 holdings concentration of 25.53%. He believes that there are opportunities to profit from mispricing that come with volatility or fear. Louis Moore Bacon is also the Founder and Co-Chair of The Moore Charitable Foundation, which was established in 1992 to support conservation-focused nonprofits dedicated to preserving land, water, and wildlife habitats. Bacon has received several awards in this regard, including the Theodore Roosevelt Conservation Partnership (TRCP) Lifetime Conservation Achievement Award and the Audubon Medal.
Our Methodology
To compile the list of billionaire Louis Bacon’s 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Moore Global Investments from Insider Monkey. From these filings, we checked each stock’s upside potential from CNN and ranked the stocks in ascending order of this upside potential. We have also added Moore Global Investments’ stake in each company and the hedge fund sentiment around each stock.
Note: All data was sourced on May 2.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Moore Global Investments’ Stake: $299.16 million
Number of Hedge Fund Holders: 223
Average Upside Potential as of May 2: 43.36%
NVIDIA Corporation (NASDAQ:NVDA) is a computing infrastructure company that provides graphics, compute, and networking solutions globally. Through its Compute & Networking and Graphics segments, it delivers products and services like GPUs, data center platforms, AI software, and autonomous driving solutions.
On April 16, Mizuho Securities maintained its Outperform rating on NVIDIA with a $168 price target. Mizuho analysts are optimistic about the company’s near-term prospects, especially with the shipment of the GB200 series and increased testing capacity for more complex GPU racks. The analysts also highlighted NVIDIA’s long-term capital expenditure in AI for the calendar year 2026. At CES 2025, NVIDIA Corporation (NASDAQ:NVDA) unveiled major innovations in AI, gaming, and autonomous vehicles.
In FQ4 2025, NVIDIA Corporation (NASDAQ:NVDA) made $39.3 billion in quarterly revenue, which was up 78% year-over-year. The company is currently trying to navigate the US-China tensions over advanced technology exports, particularly as Washington tightens restrictions on the sale of AI chips to Chinese firms. The restrictions curb China’s access to advanced AI tech, while boosting domestic chip production. This is evidenced by NVIDIA’s recent $500 billion AI server investment plan in the US.
Guinness Global Innovators is highly bullish on NVIDIA Corporation (NASDAQ:NVDA) due to its dominant AI chip market position. It stated the following in its Q4 2024 investor letter:
“For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund’s top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia’s ‘Hopper’ GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current ‘Hopper’ GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia’s extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to “inference” (the speed at which AI models respond to queries). Throughout the year, Nvidia’s financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia’s data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia’s technological leadership, ensuring continued momentum into 2025. While Nvidia’s valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.”
Overall, NVDA ranks 2nd on our list of billionaire Louis Bacon’s stock picks with huge upside potential. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.