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Is NVIDIA (NVDA) A Good Stock To Buy Now?

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·3 min read
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Baron Opportunity Fund recently published its second-quarter commentary – a copy of which can be downloaded here. During the second quarter of 2021, the Baron Opportunity Fund returned 10.14% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.55%, while the Russell 3000 Growth Index was up 11.38%. You should check out Baron’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q2 2021 Investor Letter, the fund highlighted a few stocks and Nvidia Corp. (NASDAQ:NVDA) is one of them. Nvidia Corp. (NASDAQ:NVDA) is a computing platform company. In the last three months, Nvidia Corp. (NASDAQ:NVDA) stock gained 43%. Here is what the fund said:

"NVIDIA Corporation is a fabless semiconductor company and a leader in gaming cards and accelerated computing chips. Shares of NVIDIA rose in the second quarter on financial results and guidance significantly above Street expectations, as it benefited from the upgrade cycle in its gaming franchise along with continued AI-related strength driving its data center segment. NVIDIA’s total revenues of $5.66 billion beat Street expectations by $266 million, growing 84% (including the benefit of acquisitions, 65% organic), with its gaming business growing over 100% and its data center business expanding nearly 80%. We remain confident in NVIDIA’s leading position in gaming, data centers, and autonomous machines."

Earlier this month, we published an article revealing that Nvidia Corp. (NASDAQ:NVDA) was one of the 5 best semiconductor stocks to invest in right now.

In Q1 2021, the number of bullish hedge fund positions on Nvidia Corp. (NASDAQ:NVDA) stock decreased by about 9% from the previous quarter (see the chart here), so a number of other hedge fund managers don't believe in NVDA's growth potential. Our calculations showed that Nvidia Corp. (NASDAQ:NVDA) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage.

Disclosure: None. This article is originally published at Insider Monkey.