In the current market landscape, Big Tech Funds are dominating the scene, with a small number of technology companies, including NVIDIA Corporation (NASDAQ:NVDA), reaping the majority of the gains due to the AI-driven rally. Barclays analyst Venu Krishna highlighted the continued dominance of Big Tech during the first quarter, leading to a concentration in technology stocks at the expense of other sectors.
Billionaire Steve Cohen’s Point72 Asset Management is reportedly planning to launch a new hedge fund focused on artificial intelligence, betting on both semiconductor and AI hardware companies. As Big Tech funds shift their focus towards AI-driven companies, we take a closer look at the top AI stocks in their portfolios.
NVIDIA Corporation (NASDAQ:NVDA) is one of the top picks among hedge fund investors, with 186 funds owning stakes in the company. The chipmaker has seen significant growth, with its shares soaring over 200% in the past year. Analysts like Tom O’Malley see a $25 billion opportunity for NVIDIA in the AI space, projecting strong earnings growth for the company in the coming years.
Recent product announcements and future plans by NVIDIA indicate that the company has more growth catalysts in the pipeline, including new AI architectures and powerful chips. With a forward P/E multiple of 35.74 based on Wall Street estimates for 2026, NVIDIA’s valuation remains attractive given its growth potential.
RiverPark Large Growth Fund noted NVIDIA’s strong performance in its investor letter, pointing to its impressive financial results driven by robust data center sales. NVIDIA’s position as a leading GPU designer and its expansion into the AI space have positioned it as a key player in the evolving tech landscape.
While NVIDIA remains a top AI stock among hedge funds, there are other promising AI investments that offer potential for higher returns in a shorter time frame. As the AI arms race continues to unfold, investors are keeping a close eye on companies with innovative technologies that are driving the next wave of AI advancements.
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https://finance.yahoo.com/news/nvidia-corporation-nasdaq-nvda-best-115628278.html