Nvidia (NVDA) Experienced a Sell-Off in Q1

Impax Asset Management, an investment management company, released its “Impax Global Environmental Markets Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The MSCI All Country World Index (MSCI ACWI), which measures global equities, declined in Q1 as the strength turned negative due to uncertainty surrounding US tariffs. The strategy declined and slightly underperformed its primary benchmark, the MSCI ACWI, during the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Impax Global Environmental Markets 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 21.56%, and its shares gained 26.96% of their value over the last 52 weeks. On May 29, 2025, the stock of NVIDIA Corporation (NASDAQ:NVDA) closed at $139.19 per share, with a market capitalization of $3.395 trillion.

Impax Global Environmental Markets Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) (Cloud Computing, US) experienced a share price sell-off during the quarter due to disappointing margin guidance and uncertainty stemming from the announcement of an open-source large language model from Chinese AI startup DeepSeek. Nvidia suffered from investor concerns around the potential for reduced demand for high-end graphics processing units (GPUs) as DeepSeek’s efficiency suggests lower computational requirements. Despite the drop in Nvidia’s stock, its advanced chips and proprietary coding language, Cuda, remain industry standards, indicating that it still holds a strong position in the AI market. As long as there is demand for inference there will be demand for Nvidia’s products.”

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 AI stocks on Wall Street’s radar. Polen Global Growth Strategy’s Q1 2025 letter highlighted that NVIDIA Corporation’s (NASDAQ:NVDA) stock experienced a decline of nearly 20% amid concerns regarding GPU demand. 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.