Nvidia Corporation (NVDA) Reaffirms Leadership Amidst Artificial Intelligence Booms

Fred Alger Management, an investment management company, released its “Alger Spectra Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets continued their upward trajectory in the third quarter, with the S&P 500 Index rising 8.12%. A combination of improving economic conditions, solid corporate earnings, and growing expectations for monetary easing drove the strong performance. Against this backdrop, Class A shares of the Fund outperformed the Russell 3000 Growth Index during the third quarter of 2025. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Alger Spectra Fund highlighted stocks such as NVIDIA Corporation (NASDAQ:NVDA). NVIDIA Corporation (NASDAQ:NVDA) offers graphics, compute, and networking solutions. The one-month return of NVIDIA Corporation (NASDAQ:NVDA) was 10.56%, and its shares gained 34.23% of their value over the last 52 weeks. On November 10, 2025, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $199.05 per share, with a market capitalization of $4.846 trillion.

Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its third quarter 2025 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially AI and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. Shares of Nvidia contributed positively to performance largely because the company delivered results and guidance that reinforced its leadership in the artificial intelligence boom. The company reported record revenue and earnings that exceeded analyst estimates, driven by surging demand for its AI-focused chips and related data center products. Specifically, the strongest growth came from its data center segment, which benefited from widespread adoption of Nvidia’s advanced processors by cloud providers and enterprise customers building AI infrastructure. This momentum was supported by the ramp-up of its next-generation Blackwell chips, which are designed to handle increasingly complex AI workloads. Investors were also encouraged by management’s upbeat outlook for the coming quarter.”

Analyst Explains How NVIDIA (NVDA) Can Reach $8 Trillion Market Cap

NVIDIA Corporation (NASDAQ:NVDA) is in 5th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 235 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of the second quarter, up from 212 in the previous quarter. In the second quarter of fiscal 2026, NVIDIA Corporation (NASDAQ:NVDA) reported $46.7 billion in revenues, exceeding expectations. While we acknowledge the risk and potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVIDIA Corporation (NASDAQ:NVDA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered NVIDIA Corporation (NASDAQ:NVDA) and shared Baron Technology Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.