Saturday, April 20, 2024

Hedge funds surge on Nvidia results

Photo by BoliviaInteligente on Unsplash

US chipmaker Nvidia, the hedge fund industry’s top pick during this year’s AI/tech boom, beat expectations with its latest quarterly results, sending the stock to a record high.

The company announced strong quarterly revenue forecast and a $25bn stock buyback in the results after market close on Wednesday.

Hedge fund interest in the stock had skyrocketed in the first six months, making it one of the most closely-watched names in the market.

US hedge fund ownership had increased to 1.9% of its share base as of mid-2023 from 1.1% six months earlier, according to Goldman Sachs research reported by the FT.

Tech stocks fuelled hedge fund gains in the first seven months, as growth equity names market made an unexpectedly strong rebound from last year’s sell-off, driven in part by artificial intelligence breakthroughs.

Nvidia was the first semiconductor company to surpass a market cap of $1trn.