Is NVIDIA (NVDA) the Best NASDAQ Stock to Buy According to Billionaires?

We recently published a list of 10 Best NASDAQ Stocks to Buy According to Billionaires. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other best NASDAQ stocks to buy according to billionaires.

The latest market data shows that the US economy contracted at an annualized rate of 0.3% during the first quarter of 2025. This was a rapid reversal from the 2.4% growth in the last quarter of 2024. The further segregation of the data shows that tariff uncertainty was one of the key contributing factors toward the slowdown, as net exports dropped 4.8%. According to a recent report by CNBC, traders highlighted that the imports were skewed up 41% last quarter as a preparatory move by companies to get ahead of the tariff situation. In this backdrop, the NASDAQ slipped another 0.09% on May 1, to end at 17,446.34.

On April 30, Fundstrat’s Tom Lee joined CNBC to talk about the outlook of the stock market amidst the tariff situation. He noted that the stock market is currently trying to figure out the trajectory of the economy as it is clear that the economic data for the next 3 quarters will be polluted by the tariffs and other distortions that follow. Lee highlighted that there are two questions that the market is trying to figure out. The first question is whether this is a dip and noise for 2025 only and the market exists in better shape as 2026 approaches. If this is the case then Lee believes that Equities have already made their lows with the S&P 500 at 4,835 on April 7. This will be the better-case scenario of all the possible outcomes. However, if the market feels that the uncertainty is dragging into a few more quarters in 2025 then that could be harmful for the stock market.

CNBC’s Steve Liesman added to Tom Lee’s comments by mentioning that the current stock market is the President’s market. He highlighted that when President Trump took charge the stock market rallied, however, the later policies hampered the sentiment and took the stock market down with it. Liseman further elaborated that before all these policy uncertainties the forecasts for GDP in 2025 were at 2% growth each quarter. However, now the first quarter ended up at -0.3% with an expectation of 1.6% growth next quarter. Liseman concluded that the market might see the economy bouncing back in the next quarter allowing investors to make sense of the outlook.

Amidst this uncertainty, Lee has emphasized the importance of staying invested in times of volatility to reap the benefits. We have covered more analysis from Tom Lee in 10 Best Growth Stocks to Buy According to Billionaires.

Our Methodology

To curate the list of the 10 best NASDAQ stocks to buy according to billionaires, we used the Finviz stock screener and Insider Monkey’s billionaire database. Using the screener we aggregated a list of stocks trading on NASDAQ. After sorting the list by market cap, we checked the number of billionaires holding each stock and ranked the stocks in ascending order of the number of billionaire investors. We have also added the total value of billionaire holdings and the hedge fund sentiment around each stock.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Funds: 223

Number of Billionaire Investors: 29

Value of Billionaire Holdings: $33,248,032,387

NVIDIA Corporation (NASDAQ:NVDA) is an international technology company leading the AI revolution. It specializes in accelerated computer infrastructure. The company’s core business revolves around developing graphic processing units along with advanced computing infrastructure and software.

While the company is already making strides in the AI industry, it has also started to expand in other high-growth emerging technology industries such as quantum computing. On March 19, NVIDIA Corporation (NASDAQ:NVDA) announced that it is building an accelerated quantum research center in Boston to advance quantum computing by integrating quantum hardware with AI supercomputers. The company will work with other quantum computing companies to develop new applications.

Financially speaking, NVIDIA Corporation (NASDAQ:NVDA) has been beating expectations. During the fiscal fourth quarter of 2024, the company grew its quarterly revenue by 78% year-over-year to reach a record revenue of $39.3 billion. This was driven by another record quarter for its Data Center segment which grew 93% over the past year. NVIDIA Corporation (NASDAQ:NVDA) is one of the best NASDAQ stocks to buy according to billionaires.

Ithaka US Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is the undisputed leader in accelerated computing, with dominant market share in Graphics Processing Units (GPUs) powering AI workloads across data centers, edge devices, and emerging platforms. Its end-to-end ecosystem—from silicon to software (CUDA, networking, and AI frameworks)—creates high switching costs and a widening competitive moat. With secular demand for AI infrastructure still in its early innings, Nvidia stands to benefit from sustained topline growth and strong operating leverage. In early January, a little known Chinese AI company, DeepSeek, released its large language model (LLM), DeepSeek-R1, to an unexpecting world. This model was purportedly trained on very few high-end Nvidia chips and was highly efficient when compared to other leading models. This release set off a chain reaction where investors have had to grapple with the idea that the world may not need as many GPUs as previously thought, which hampered the Nvidia buy case and sent the P/E multiple down to its cheapest level in the past 5 years.”

Overall, NVDA ranks 5th on our list of best NASDAQ stocks to buy according to billionaires. While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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