Top 5 S&P 500 Stocks by Index Weight

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 132

Index Weight: 2.957218%

NVIDIA Corporation (NASDAQ:NVDA), the American semiconductor firm, ranks 4th on the S&P 500 index by weight. On June 14, 2023, NVIDIA Corporation (NASDAQ:NVDA)’s market cap exceeded $1 trillion, supported by the AI boom. The company also announced its plans to release multiple AI-based products and services at the end of May. 

According to Insider Monkey’s first quarter database, 132 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), compared to 106 funds in the earlier quarter. Rajiv Jain’s GQG Partners is a prominent stakeholder of the company, with 8.2 million shares worth $2.3 billion. 

Saltlight Capital made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its first quarter 2023 investor letter:

“In May 2021, we shared our thoughts on AI with a particular focus on NVIDIA Corporation (NASDAQ:NVDA), expressing our belief that it was poised to become a significant enabler of AI technology. At the time, it felt like our insights were being carried away by the wind.

Our thesis hinged on the idea that NVIDIA’s GPUs would form the fundamental computing hardware for neural networks. This hardware would not only develop AI tools and infrastructure but also democratize access to AI technology.

At the end of that letter, we included a substantial excerpt from an interview with NVIDIA’s CEO, Jensen Huang. Looking back, his words now seem eerily prophetic. He suggested, albeit vaguely, a solution to the complexity problem. He said:

“But finally, we have this piece of this new technology called artificial intelligence that can write that complex software so that we can automate it. The whole goal of writing software is to automate something. We’re in this new world where, over the next 10 years, we’re going to see the automation of automation””…(Click here to read the full text)