Sands Capital Select Growth Strategy’s Top Absolute Individual Contributor: NVIDIA Corporation (NVDA)

Sands Capital, an investment management company, released its “Sands Capital Select Growth Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. U.S. large-cap growth equities continued to recover from a sharp sell-off in early April. Strong corporate earnings, investor enthusiasm around artificial intelligence (AI), and growing expectations for Federal Reserve policy easing drove the robust gains. The portfolio returned 6.3% (net) in the quarter, compared to the benchmark’s 10.5% gain. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its third-quarter 2025 investor letter, Sands Capital Select Growth Strategy 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 -12.93%, and its shares gained 33.19% of their value over the last 52 weeks. On November 26, 2025, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $180.26 per share, with a market capitalization of $4.381 trillion.

Sands Capital Select Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its third quarter 2025 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company helping to enable the future of computing. The business delivered another strong quarter, with demand continuing to outpace supply. Excluding China, its datacenter segment accelerated from 64 percent year-over-year growth last quarter to 73 percent this quarter, with guidance implying a further increase to 84 percent. NVIDIA sustained growth even as China’s contribution to datacenter revenue fell from about 10 percent to nearly zero. For now, China remains a source of potential upside. Looking ahead, the upcoming Vera Rubin “superchip” is expected to significantly boost compute performance. This could expand use cases and support higher pricing, as NVIDIA typically charges a percentage of the incremental performance gain. In September, OpenAI and NVIDIA announced a strategic partnership to deploy at least 10 gigawatts of NVIDIA systems for OpenAI’s next-generation AI infrastructure. The first phase of this deployment is expected to go live in 2026 and will use NVIDIA’s Vera Rubin platform.”

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 third quarter of fiscal 2026, NVIDIA Corporation (NASDAQ:NVDA) reported $57 billion in revenues, marking a 62% year over year growth.  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 the list of stocks Jim Cramer discussed recently. 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.