Riverpark Large Growth Fund Views NVIDIA (NVDA) as the Most Strategically Important Enabler Of Global AI Transformation

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets surged in the second quarter, with the S&P 500 Total Return Index rising 10.94% and the Russell 1000 Growth Index returning 17.84%. The fund also surged in the quarter and returned 15.01%. Continued enthusiasm for artificial intelligence, better-than-expected earnings in several large-cap growth sectors, and improving macroeconomic conditions lifted the markets in the quarter. Growth-focused stocks took the lead once more, with the strongest performance coming from sectors like technology, communication services, and certain areas of consumer discretionary. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, RiverPark Large Growth 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 9.02%, and its shares gained 61.95% of their value over the last 52 weeks. On August 1, 2025, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $173.72 per share, with a market capitalization of $4.237 trillion.

RiverPark Large Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:

"NVIDIA Corporation (NASDAQ:NVDA): NVDA was the portfolio’s top contributor during the second quarter of 2025. The company reported fiscal Q1 2026 results in late May, with revenue of $44.1 billion, up 69% year-over-year, and strong growth across all key segments. Data Center revenue rose 73% to $39.1 billion, while Gaming revenue climbed 42% to $3.8 billion. Though export-related inventory charges impacted gross margins, core profitability remained robust, and operating margins continued to expand. Management also issued upbeat forward guidance, with expectations of $44–47 billion in fiscal Q2 revenue.

During the quarter, NVIDIA reinforced its leadership position in accelerated computing through strong demand for its Hopper architecture and the upcoming Blackwell platform. The company highlighted new demand from sovereign AI infrastructure, automotive applications, and enterprise inference workloads. Investor enthusiasm was sustained despite temporary volatility linked to U.S. export restrictions, as NVIDIA’s dominance in AI infrastructure remained clear.

We continue to view NVIDIA as the most strategically important enabler of global AI transformation. Its GPU leadership, ecosystem lock-in through CUDA, and rapidly expanding use cases for its products and services, position it for strong multi-year growth. While geopolitical risk and valuation may lead to near-term volatility, the company’s structural advantages and free cash flow profile support our long-term conviction."

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 the fiscal first quarter of 2026 with $44 billion in revenues, representing a 69% year-over-year increase. While we acknowledge the potential of NVIDIA Corporation (NASDAQ: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 best stocks to buy for the next 6 months. 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.