We recently compiled a list of the Tech Billionaire Chase Coleman’s Top 10 Stock Picks. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other top stock picks of Tech Billionaire Chase Coleman.
“Tiger cub” Chase Coleman continues to shape the investment landscape with his strategic portfolio decisions. His New York-based investment firm, Tiger Global Management, helped him carve his own path in the financial world and distinguish himself as one of the most successful protegees of Julian Robertson. Previously, Coleman held the position of technology analyst at Tiger Management. Since its foundation in 2001, carrying forward Robertson’s legacy, Tiger Global Management has consistently outperformed market benchmarks.
Focusing mainly on the tech sector, with “headliners” such as Faceabook, Tiger Global led all venture capital firms in raised capital between 2007 and 2017. Additionally, in 2020, the firm generated $10.4 billion in profits for its investors, securing the top spot among hedge funds on LCH Investments’ annual list of world’s greatest hedge fund managers. When the tech sector faced a major downturn in 2022, Tiger Global’s portfolio, which was heavily invested in technology, took a significant hit. The bold strategy of sticking to high-growth technology firms paid off, as the firm’s equity portfolio recovered and showed steady gains in the following years.
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As of the end of the third quarter of 2024, Tiger Global’s holdings continue to reflect Coleman’s emphasis on the tech sector, with 45 holdings where technology stocks dominate 52.37% of the portfolio, along with concentrations in communication services, healthcare, and financial services. Despite a challenging global environment, the fund has maintained steady growth, increasing its value by over 1.08%, reaching over $23.4 billion in value.
Chase Coleman’s commitment to identifying high-quality businesses, especially in the tech sector, is reflected in Tiger Global’s top stock picks. These choices highlight a strategy centered on industry leaders and innovative companies with strong growth potential.
Chase Coleman of Tiger Global
Our Methodology
To compile the list of Chase Coleman’s top 10 stock picks, we have looked at Tiger Global Management’s latest 13F filing and identified the largest positions based on their value.
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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
NVIDIA Corporation (NASDAQ:NVDA)
Shares held by Tiger Global: 9.68 million
Value of position: $1.18 billion
NVIDIA Corporation (NASDAQ:NVDA) is a global leader in the design and supply of graphics processing units (GPUs), application programming interfaces (APIs), and system-on-a-chip (SoC) units. The company is highly influential in fields like data science, high-performance computing, mobile computing, and automotive technologies, with a dominant market share in the discrete desktop GPU sector. NVIDIA also plays a key role in artificial intelligence hardware and software.
NVIDIA shows impressive growth, with a market cap of $3.31 trillion and strong profitability, including a profit margin of 55.04% and a return on equity of 123.77%. The company’s revenue for the trailing twelve months stands at $96.31 billion, with a net income of $53.01 billion. The forward P/E ratio of 31.75 suggests strong future earnings potential, especially with a PEG ratio of 0.84 indicating growth at an attractive price.
NVIDIA Corporation (NASDAQ:NVDA)’s earnings for the current fiscal year are projected to reach $2.95 per share, with revenue estimated at $129.11 billion. Analysts expect strong growth, forecasting a 127% increase in sales for the year, mostly driven by NVIDIA’s dominance in AI and gaming. Wall Street analysts have set a 12-month price target for NVIDIA at an average of $175.00.
Tiger Global holds 9.68 million shares of NVIDIA Corporation (NASDAQ:NVDA), valued at approximately $1.18 billion, which constitutes 5.01% of its portfolio.
Overall, NVDA ranks 8th on our list of Billionaire Chase Coleman’s top stock picks. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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.
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Disclosure: None. This article is originally published at Insider Monkey.