NVIDIA Corporation (NVDA) Tumbled on Uncertainty in the Technology World
Sands Capital, an investment management company, released its 'Sands Capital Technology Innovators Fund' Q1 2025 investor letter. A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned -10.4% (net) in the first quarter compared to a 9.4% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. The choice of securities in the software sector was the primary factor negatively impacting relative performance. You can check the fund's top 5 holdings to know more about its best picks for 2025.
In its first-quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as NVIDIA Corporation (NASDAQ: NVDA). NVIDIA Corporation (NASDAQ:NVDA) offers graphics and compute, and networking solutions. The one-month return of NVIDIA Corporation (NASDAQ:NVDA) was 24.40%, and its shares gained 18.01% of their value over the last 52 weeks. On May 27, 2025, the stock of NVIDIA Corporation (NASDAQ:NVDA) closed at $135.50 per share, with a market capitalization of $3.305 trillion.
Sands Capital Technology Innovators Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:
"NVIDIA Corporation (NASDAQ:NVDA) is the market-leading provider of AI technology. As noted above, shares declined in the first quarter amid the investor debate over DeepSeek, AI return on investment, and broader demand trends. This uncertainty appears reflected in the stock's current valuation, which seems to be pricing in a down-cycle. Our research suggests this sentiment is misplaced, given demand durability and the company's competitive position—including the fungibility of its hardware across training and inference, the importance of its CUDA programming platform, and the breadth of its ecosystem. NVIDIA ended the quarter as the portfolio's top weight, reflecting our conviction and its fit with our investment criteria."
NVIDIA Corporation (NASDAQ:NVDA) is in 5th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 212 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of the first quarter, which was 223 in the previous quarter. While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered NVIDIA Corporation (NASDAQ:NVDA) and shared the list of AI stocks on latest news and ratings. Polen Global Growth Strategy's Q1 2025 letter noted that NVIDIA Corporation's (NASDAQ:NVDA) stock fell nearly 20% due to concerns about GPU demand from geopolitical tensions and export bans to China, leading to a cautious long-term growth outlook. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
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