By ACS Vision Investment Insights Team | May 16, 2025
As artificial intelligence (AI) continues to redefine global industries, NVIDIA Corporation (NASDAQ: NVDA) has emerged as a cornerstone of billionaire portfolios. With its dominance in AI infrastructure and a track record of explosive growth, the company is widely regarded as a “dream scenario” for tech investors 16. Here’s why NVIDIA remains a top stock pick among hedge funds and billionaires in 2025.
1. NVIDIA’s Unrivalled Leadership in AI
NVIDIA’s GPUs and AI-driven solutions are the backbone of modern AI infrastructure, powering everything from data centres to autonomous vehicles and robotics. The company holds over 95% market share in advanced AI chips, a position reinforced by its Blackwell GPU platform, which is twice as powerful as its predecessor for training AI models CEO Jensen Huang has positioned NVIDIA at the forefront of a projected $1 trillion AI infrastructure market, with major cloud providers like AWS, Microsoft Azure, and Google Cloud adopting its systems.
Key milestones:
- Blackwell AI Supercomputers: Generated billions in revenue during their debut quarter, driven by demand for AI training and inference capabilities
- Global Partnerships: Collaborations with Saudi Arabia’s HUMAIN and UAE-based G42 to expand Middle Eastern data centre capacity, offsetting potential China-related export constraints.
2. Record-Breaking Financial Performance
NVIDIA’s Q4 2025 results shattered expectations, underscoring its financial resilience:
- Revenue: 39.3billion(+7839.3billion(+7835.6 billion (+93% YoY) 34.
- Full-Year Revenue: $130.5 billion, a 114% increase from 2024 3.
- Earnings: Adjusted EPS of 0.89, beating estimates by 0.89, beating estimates by 0.04.
Analysts project Q1 2026 revenue guidance of $43 billion, reflecting sustained demand for AI chips despite geopolitical headwinds.
3. Billionaire and Hedge Fund Confidence
NVIDIA is a favorite among institutional investors:
- 29 Billionaire Holders: Including prominent hedge fund managers who prioritise long-term growth.
- 223 Hedge Funds: Maintain stakes in NVDA, citing its dominance in AI and data centre markets.
Wedbush analyst Dan Ives calls NVIDIA the “godfather of AI” and predicts new all-time highs for the stock, citing tariff relief and the AI investment cycle as catalysts 16. UBS also reaffirmed a Buy rating with a $175 price target, highlighting NVIDIA’s ability to navigate export restrictions through strategic partnerships.
4. Geopolitical Tailwinds
Recent U.S.-China trade agreements have eased tariff pressures, a critical development for NVIDIA, which derived 13% of FY2025 revenue ($17 billion) from China 6. The Biden administration’s deal to grant Saudi Arabia access to advanced AI chips further diversifies NVIDIA’s supply chain and mitigates regulatory risks.
5. Risks to Consider
While NVIDIA’s outlook is bullish, investors should note:
- Valuation Concerns: Some analysts argue the stock’s premium pricing leaves little margin for error 9.
- Production Delays: Initial Blackwell GPU rollout faced volatility, though management has since reassured investors 9.
- Competition: AMD and Intel are aggressively targeting the AI chip market, though NVIDIA’s ecosystem (CUDA software, networking) creates high switching costs 9.
Conclusion: A Long-Term AI Play
NVIDIA’s strategic positioning in AI infrastructure, coupled with billionaire confidence and robust financials, makes it a compelling investment for 2025 and beyond. As Morgan Stanley notes, $300 billion in AI spending by tech giants this year alone will fuel NVIDIA’s next growth phase.
For investors seeking exposure to the AI revolution, NVIDIA remains a cornerstone stock—“the only chip feeling the AI revolution”.
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Disclaimer: This article is for informational purposes only. Conduct your own research or consult a financial advisor before investing.