NVIDIA Corporation (NVDA) Pulled Back in Q1 After Strong 2024

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q1 2025 investor letter. A copy of the letter can be downloaded here. The market faced a challenging start to 2025, with the S&P 500 Index declining 4.27% and the Russell 1000 Growth Index falling 9.97% in the first quarter. Against this backdrop, the fund dropped 7.21%, outperforming its growth benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, RiverPark Large Growth Fund highlighted stocks such as NVIDIA Corporation (NASDAQ: NVDA). NVIDIA Corporation (NASDAQ:NVDA) offers graphics and compute, and networking solutions. The one-month return of NVIDIA Corporation (NASDAQ:NVDA) was 18.72%, and its shares gained 17.50% of their value over the last 52 weeks. On May 30, 2025, the stock of NVIDIA Corporation (NASDAQ:NVDA) closed at $135.13 per share, with a market capitalization of $3.3 trillion.

RiverPark Large Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) was our top detractor in the quarter as investors took profits following its extraordinary performance in 2024. Despite reporting strong quarterly results, the stock pulled back amid concerns that AI-related demand may be plateauing near-term and that capital expenditures by hyperscalers could moderate. Additionally, investor anxiety rose following the announcement of sweeping new tariffs, which sparked fears of supply chain disruptions and rising input costs across the semiconductor industry. We continue to believe that NVIDIA remains one of the most strategically important companies in global computing, with best-in class GPUs, a dominant software ecosystem, and expanding opportunities in inference, networking, and edge AI. The long-term secular trend toward accelerated computing remains intact, and we believe NVDA is well-positioned to be a key beneficiary.”

NVIDIA Corporation (NASDAQ:NVDA) is in 5th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 212 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of the first quarter, which was 223 in the previous quarter. NVIDIA Corporation (NASDAQ:NVDA) reported another record quarter in fiscal first quarter of 2026 with $44 billion in revenues, representing a 69% year-over-year increase. While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered NVIDIA Corporation (NASDAQ:NVDA) and shared the list of stocks discussed by Jim Cramer. Impax Global Environmental Markets Fund noted in its Q1 2025 letter that NVIDIA Corporation (NASDAQ:NVDA) experienced a share price drop in the quarter due to weak margin guidance and uncertainty from DeepSeek’s launch of an open-source large language model. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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