We recently compiled a list of the 10 best high-volume stocks to buy, according to hedge funds. In this article, we’ll take a look at how NVIDIA Corporation (NASDAQ:NVDA) stands compared to other high-volume stocks.
On September 18, the Federal Reserve made its first interest rate cut since the onset of the coronavirus pandemic, cutting its benchmark interest rate by 0.5 percentage point to counter a potential labor market slowdown. This adjustment will bring the federal funds rate to 4.75-5%. Aside from emergency rate cuts during the pandemic, the last time the Federal Open Market Committee (FOMC) cut interest rates by half a percentage point was during the 2008 global financial crisis. In response to this decision, Federal Reserve Chairman Jerome Powell said:
“We are trying to achieve a situation where we restore price stability without the painful increase in unemployment that sometimes accompanies this inflation. That is what we are trying to do and today We hope that our actions will be seen as an expression of our strong determination to achieve this goal.”
A statement after the meeting emphasized that the Federal Reserve is increasingly confident that inflation will remain on track toward its 2% goal. The company believes the risks to achieving its employment and inflation targets are now broadly balanced. Wall Street expects that subsequent rate cuts will allow well-established and financially stable companies to increase spending and investment, potentially boosting stock prices through the remainder of 2024 and early 2025. There is. Similarly, Wells Fargo analysts suggest that the global economy will remain the same. It will benefit from a number of major central banks that have already announced or are expected to announce interest rate cuts. But not everyone is optimistic. Billionaire investor Ray Dalio stressed that the US economy continues to struggle with “massive debt.” He said in an interview that the Fed faces the challenge of keeping interest rates high enough to benefit creditors while not raising them too high to be a burden on debtors. pointed out. Dalio described this as a difficult “balancing act.”
On another front, the Conference Board’s September Consumer Confidence Index fell to 98.7 from 105.6 in August, the biggest single-month decline since August 2021. This was below the Dow Jones forecast of 104 and significantly lower than before the pandemic. A level of 132.6 recorded in February 2020. All five components of the index declined, with the largest declines occurring among those ages 35 to 54 with incomes below $50,000. The last time the index fell so sharply was when inflation was beginning to rise to its highest level in 40 years. Dana Peterson, chief economist at the Conference Board, said of the change in sentiment:
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“Consumers’ evaluation of the current economic situation has become more negative, while views on current labor market conditions have softened further.Consumers are also more pessimistic about future labor market conditions. , were less positive about future economic conditions and future income.”
Amid a complex economic landscape with mixed signals across sectors, investor sentiment remains cautiously optimistic as market participants closely monitor economic indicators and Federal Reserve policy to identify future trends. It has become a target. With this in mind, here’s a list of the 10 best bulk stocks to buy, according to hedge funds.
our methodology
We used a stock screening tool to identify stocks that met certain criteria as of September 23rd. Our selection criteria focused on stocks with significant market activity, such as three-month average trading volume of more than 5 million shares. We also considered companies with quarterly revenue growth greater than 15%. We also highlighted the number of hedge funds that have invested in each stock as of Q2 2024.
Here at Insider Monkey we’re obsessed with hedge fund stocks. The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
A close-up view of a colorful high-end graphics card connected to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Average quantity: 340.04 million
Quarterly revenue growth rate: 122.40%
Number of hedge fund holders: 179
NVIDIA Corporation (NASDAQ:NVDA) is a market leader in the design and sale of graphics processing units (GPUs), an area experiencing significant growth due to the increasing demand for artificial intelligence models. Over the past four quarters, NVIDIA has delivered record operating results with margins exceeding 60%.
Recently, William Blair began his article on NVIDIA Corporation (NASDAQ:NVDA) with an Outperform rating, acknowledging the company’s leadership in parallel computing and strong position in the AI industry. The company highlighted NVIDIA’s extensive history in designing parallel computing systems, which has enabled the company to enter high-growth markets such as gaming, automotive, and high-performance computing (HPC). Analysts predict that NVIDIA’s data center revenue could jump 217% in 2024 and exceed $110 billion in 2025, up from just $15 billion in 2023. I pointed out. William Blair also highlighted NVIDIA’s system-level approach. has expanded its total addressable market from about $100 billion for GPUs to the broader $800 billion semiconductor market and $1.6 trillion cloud services market.
A total of 179 hedge funds held long positions in NVIDIA Corporation (NASDAQ:NVDA) during the second quarter, with a total equity value of $53.7 billion.
Overall, NVDA ranks #1 on the list of the best bulk stocks to buy, according to hedge funds. While we appreciate NVDA’s potential as an investment, we also believe that certain AI stocks have the potential to deliver strong returns in the short term. If you’re looking for AI stocks with more promise than NVDA, but trading at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: $30 trillion opportunity: 15 humanoid robot stocks to buy, according to Morgan Stanley and Jim Cramer, says NVIDIA has ‘become a wasteland.’
Disclosure: None. This article was originally published on Insider Monkey.
