Wedgewood Partners, a St. Louis, Missouri-based investment management firm, released its Q1 2020 Investor letter – a copy of which is available for download here. Wedgewood Partners returned -16.30% for the first quarter. Meanwhile, the benchmark Russell 1000 Growth Index and the S&P 500 Index lost 14.10% and 19.60%, respectively.
In the said letter, Wedgewood Partners highlighted a few stocks and Nvidia Corp (NASDAQ:NVDA) is one of them. Nvidia engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. Year-to-date, NVDA stock gained 26.8% and on April 29th it had a closing price of $298.46. Its market cap is of $182.8 billion. Here is what Wedgewood Partners said:
“NVIDIA actually finished the quarter with a positive absolute return as the Company reverted to solid revenue growth of +41% after a few quarters of declines. Most of the revenue growth was driven by rapid uptake of NVIDIA’s datacenter processors, especially for training natural language processing models that are being utilized for search engines, virtual personal assistant development, customer service chatbots, and other real-time conversational artificial intelligence (AI) applications. We think NVIDIA should continue to see strength in datacenter demand as well as gaming, despite the effects of COVID-19, but will monitor its valuation relative to opportunities that have more pessimistic embedded future growth assumptions.”
In Q4 2019, the number of bullish hedge fund positions on NVDA stock increased by about 41% from the previous quarter (see the chart here).
Wedgewood Partners comments on Electronic Arts
In Q4 2019, the number of bullish hedge fund positions on EA stock decreased by about 3% from the previous quarter (see the chart here).
Disclosure: None. This article is originally published at Insider Monkey.
