We recently published a list of 10 Best Growth Stocks to Buy According to Billionaires. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other best growth stocks to buy according to billionaires.
The stock market has been on a rollercoaster ride for the past few weeks as the sentiment has quickly shifted from post-election bullishness to being priced in for a slow-down or a recession. The volatility can be estimated by the 19% decrease in the S&P 500 from its recent all-time high. To talk about the current market volatility and the way forward, Fundstrat’s Tom Lee joined CNBC for an interview. He noted that the market is currently pessimistic as recent data shows that they have priced in a 60% probability of a recession, however, it is essential to note that if the tariff situation de-escalates then the probability of a recession isn’t that high. As a result, Lee thinks that there is a big window of opportunity for stocks to rebound, however, this rebound is contingent on the path of tariff de-escalation.
While addressing the concerns that if the market is in a bear market, Lee noted that if we define a bear market by stocks grinding and losing money, then this has been happening since December 2024. However, if you define a bear market as unleashing a type of financial tightening that leads to a recession, the current market does not fit that criteria. Lee acknowledged that it does feel like a bear market for an average person.
Lee also talked about the viable investor strategy under the current circumstances. Firstly, he highlighted that people are fighting two brains at the moment, one is a tactical brain, where people want to know if this is the bottom and be convinced by seeing the stocks rally on bad news. On the other hand, there is the investor or the long-term brain, which suggests that people should have confidence in the US companies to navigate this volatility. Lee noted that he is a buyer of this volatility as he thinks that the de-escalation of tariffs will take place, which will result in a big rebound for stocks.
To compile a list of the 10 best growth stocks to buy according to billionaires, we used the Finviz stock screener, Seeking Alpha, and Insider Monkey’s Billionaire database. Using the screener we aggregated a list of growth stocks that have grown their top-line by more than 30% over the past 3 years and sorted them by market cap. Next, we cross-checked each stock’s sales growth from Seeking Alpha and ranked the stocks in ascending order of the number of billionaire investors. Please note that we have also included the hedge funds sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is NVIDIA Corporation (NVDA) the Best Growth Stock to Buy According to Billionaires?
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
3-Years Sales Growth: 69.25%
Number of Hedge Fund Holders: 223
Number of Billionaires: 29
Value of Billionaire Holdings: $33,248,032,387
NVIDIA Corporation (NASDAQ:NVDA) is a high-growth technology company leading the AI revolution through its graphics processing units and system-on-chips units. On April 10, Morgan Stanley analyst Joseph Moore maintained their Buy rating on the stock. The analyst noted that the company is positioned well in the market despite potential challenges. He highlighted that one of the key differentiators for the company is that it generates significant revenue from a single product family which increases its influence in the industry.
Moreover, Guinness Global Innovators highlighted NVIDIA Corporation (NASDAQ:NVDA) as one of its top performers in its Q4 2024 investor letter. The fund highlighted that the company delivered remarkable returns of more than 177.7% during 2024, driven by its GPUs and its application within AI and data center industries. The company holds over 95% market share in advanced AI chips which positions it to capture an estimated $2 trillion AI infrastructure market in the next 5 years. It is the best growth stock to buy according to billionaires.
Guinness Global Innovators stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund’s top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia’s ‘Hopper’ GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current ‘Hopper’ GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia’s extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to “inference” (the speed at which AI models respond to queries). Throughout the year, Nvidia’s financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia’s data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia’s technological leadership, ensuring continued momentum into 2025. While Nvidia’s valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.”
Overall, NVDA ranks 1st on our list of best growth stocks to buy according to billionaires. While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
