Nvidia Corp. (NVDA) Climbed Back from its Declines in Q2

Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy generated a total return of 15.3% net of fees in the quarter compared to the strategy’s unmanaged benchmark, the S&P 500 Index’s 10.9% return. According to a three-factor performance attribution model, the selection effect contributed positively to the portfolio’s performance, which was partially offset by allocation and interaction effects. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Patient Capital Opportunity Equity Strategy 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 20.26%, and its shares gained 46.70% of their value over the last 52 weeks. On July 17, 2025, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $173.00 per share, with a market capitalization of $4.219 trillion.

Patient Capital Opportunity Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:

"NVIDIA Corporation (NASDAQ:NVDA) recovered strongly in the second quarter, climbing back from earlier declines to end the quarter at an all-time high. As the undisputed leader in Graphics Processing Units (GPUs), Nvidia continues to benefit from surging demand for AI training and inference. Despite concerns over competition from TPUs and rivals like AMD, Nvidia remains in the lead. The company is rapidly releasing next-gen products, with the Blackwell line-up, its fastest architecture yet, hitting the market just 2 years after its predecessor. Moreover, Nvidia is aggressively expanding into adjacent areas including robotics, edge AI, AI cloud leasing, and AI software putting them in direct competition with some of their biggest customers. CEO Jensen Huang describes Nvidia as a "full-stack, accelerated computing platform", reflecting its blend of cutting-edge hardware, software (CUDA), and AI infrastructure. With leading-edge tech, a shortening innovation cycle, and robust cash flow, we believe Nvidia is well positioned to ride the accelerating wave of AI adoption."

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. NVIDIA Corporation (NASDAQ:NVDA) reported another record quarter in fiscal first quarter of 2026 with $44 billion in revenues, representing a 69% year-over-year increase. While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered NVIDIA Corporation (NASDAQ:NVDA) and shared the list of AI stocks investors are watching closely. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.