Nvidia Stock Sits in 82% of Portfolios, But Hedge Funds Are Making Other AI Bets
Nvidia sits in 82% of active managers’ portfolios, followed by Broadcom at 78%. Yet, BofA data reveals different hedge fund AI bets.
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Rackspace is combining Nvidia Blackwell chips and Palantir software into managed sovereign AI pods for regulated enterprises and governments.
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Nvidia sits in 82% of active managers’ portfolios, followed by Broadcom at 78%. Yet, BofA data reveals different hedge fund AI bets.
Nvidia maintains an exceptional 64% net profit margin and has pivoted from gaming chips to become the leading provider of AI data center chips. The article argues the stock appears undervalued, with a forward P/E ratio of 25.1 well below its five-year average of 34.4, suggesting a fair value around $311 per share—39% higher than its current price.
Jim Cramer suggests Nvidia conduct a $500 billion share buyback: "It would demonstrate a level of conviction that is much needed right here."
The article compares AMD and Nvidia as AI chip investments for 2026. While AMD shows strong growth with 34.3% revenue increase and successful partnerships, Nvidia dominates with 65.5% revenue growth, 55.6% net margins, and $96.7B in free cash flow. The author recommends Nvidia for long-term investors due to its superior scale, ecosystem depth, and industry lock-in, though AMD is presented as a reasonable lower-priced alternative.
Nebius Group, an AI cloud infrastructure company, has secured over $40 billion in customer commitments and achieved 454% revenue growth in Q2 2026. However, the analyst projects a wide valuation range of $125-$835 per share by 2029, depending on per-megawatt pricing trends. The company faces significant shareholder dilution from convertible notes and massive capital expenditures ($8.1 billion in H1 2026), leading the analyst to remain on the sidelines until pricing stability is confirmed.
The article provides an in-depth analysis of Invesco Large Cap Growth ETF (PWB), a smart beta ETF launched in 2005 that tracks the Dynamic Large Cap Growth Intellidex Index. With $2.51 billion in assets and a 0.55% expense ratio, PWB offers exposure to large-cap growth stocks with heavy allocation to Information Technology (51.9%). Year-to-date returns are 23.69%, though the fund carries medium risk with a beta of 1.23. The article also compares PWB to alternatives like Vanguard Morningstar Growth ETF and Invesco QQQ, noting that cheaper, lower-risk market cap weighted options exist.