NVIDIA (NVDA): Uniquely Positioned at the Center of the Global AI Computing Cycle

Columbia Threadneedle Investments, an investment management company, released its “Columbia Global Technology Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their upward journey in the third quarter, driven by strong earnings growth, continued enthusiasm around artificial intelligence (AI), and easing trade tensions. The composite returned 12.06% in the quarter, compared to the S&P Global 1200 Information Technology Index’s 12.82% return.  Positive stock selection drove the relative performance of the fund in the quarter. In addition, you can check the fund’s top 5 holdings for its best picks for 2025.

In its third-quarter 2025 investor letter, Columbia Global Technology Growth Fund highlighted stocks such as NVIDIA Corporation (NASDAQ:NVDA). NVIDIA Corporation (NASDAQ:NVDA) offers graphics, compute, and networking solutions. The one-month return of NVIDIA Corporation (NASDAQ:NVDA) was 9.14%, and its shares gained 48.83% of their value over the last 52 weeks. On October 31, 2025, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $202.49 per share, with a market capitalization of $4.93 trillion.

Columbia Global Technology Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its third quarter 2025 investor letter:

"Core holding NVIDIA Corporation (NASDAQ:NVDA) delivered strong gains during the quarter, as the company reported impressive quarterly results driven by extraordinary demand for its data-center products. Accelerating adoption of NVIDIA chips related to generative AI across hyperscalers, enterprise and sovereign customers resulted in quarterly revenue doubling compared to the prior year. With its unmatched hardware leadership, robust software ecosystems (CUDA platform, AI frameworks and networking) and an expanding base of enterprise customers and strategic partners — including the announcement of a $100 billion investment in AI leader OpenAI — NVIDIA remains uniquely positioned at the center of the global AI computing cycle."

NVIDIA Corporation (NASDAQ:NVDA) is in 5th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 235 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of the second quarter, up from 212 in the previous quarter. In the second quarter of fiscal 2026, NVIDIA Corporation (NASDAQ:NVDA) reported $46.7 billion in revenues, exceeding expectations. 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 invest in according to billionaire D.E. Shaw. In addition, please check out our hedge fund investor letters Q3 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.