Reasons for the Outperformance of NVIDIA Corp. (NVDA) in Q3 - Yahoo Finance

The Ithaka Group, an investment advisory firm, released the “Ithaka US Growth Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the weak market, the fund underperformed during the quarter, by falling 6.3% compared to the Dow’s 2.6% fall, the S&P 500’s 3.7% decline, the NASDAQ's 4.1% decline, and the fund’s benchmark, the Russell 1000 Growth’s 3.1% decline. The underperformance of the fund during the quarter was entirely due to stock selection. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Ithaka US Growth Strategy highlighted stocks like NVIDIA Corporation (NASDAQ:NVDA) in the third quarter 2023 investor letter. Headquartered in Santa Clara, California, NVIDIA Corporation (NASDAQ:NVDA) provides computer graphics processors, chipsets, and related multimedia software. On October 27, 2023, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $405.00 per share. One-month return of NVIDIA Corporation (NASDAQ:NVDA) was -9.56%, and its shares gained 200.07% of their value over the last 52 weeks. NVIDIA Corporation (NASDAQ:NVDA) has a market capitalization of $1 trillion.

Ithaka US Growth Strategy made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:

"NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing and accelerated computing due to its prowess in the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including data center acceleration, generative artificial intelligence (GenAI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: first, the stock benefited from tremendous excitement surrounding the further development of generative AI technologies and the likelihood this would necessitate the purchase of a large number of Nvidia’s products for years to come; second, Nvidia posted a another beat-and-raise quarter, besting Street estimates by 23% on the top-line and 33% on the bottom-line.

We trimmed our NVIDIA position once during the quarter after it crested our self-imposed cap of 8% in any one holding and added the proceeds to two other portfolio holdings."

Photo by Javier Esteban on Unsplash

NVIDIA Corporation (NASDAQ:NVDA) is in 17th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 175 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of second quarter which was 132 in the previous quarter.

We discussed NVIDIA Corporation (NASDAQ:NVDA) in another article and shared the list of best American stocks to buy heading into 2024. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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Reasons for the Outperformance of NVIDIA Corp. (NVDA) in Q3 - Yahoo Finance

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