Here’s Why NVIDIA Corporation (NVDA) Fell in Q1

3 months ago 22

Soumya Eswaran

Tue, Apr 29, 2025, 6:21 AM 3 min read

Investment advisory firm Ithaka Group released the “Ithaka US Growth Strategy” first-quarter 2025 capitalist letter. A transcript of the missive tin be downloaded here. Following 2 years of gains exceeding 25%, the markets welcomed the caller twelvemonth with sizeable volatility and a crisp decline. In the archetypal quarter, Ithaka’s portfolio underperformed the R1000G by 30 ground points, signaling -10.3% to -10.0% (gross of fees) amid a antagonistic marketplace environment. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its first-quarter 2025 capitalist letter, Ithaka US Growth Strategy highlighted stocks specified arsenic NVIDIA Corporation (NASDAQ: NVDA). NVIDIA Corporation (NASDAQ:NVDA) offers graphics and compute, and networking solutions. The one-month instrumentality of NVIDIA Corporation (NASDAQ:NVDA) was -1.29%, and its shares gained 25.84% of their worth implicit the past 52 weeks. On April 28, 2025, NVIDIA Corporation (NASDAQ:NVDA) banal closed astatine $108.73 per stock with a marketplace capitalization of $2.653 trillion.

Ithaka US Growth Strategy stated the pursuing regarding NVIDIA Corporation (NASDAQ:NVDA) successful its Q1 2025 capitalist letter:

"NVIDIA Corporation (NASDAQ:NVDA) is the undisputed person successful accelerated computing, with ascendant marketplace stock successful Graphics Processing Units (GPUs) powering AI workloads crossed information centers, borderline devices, and emerging platforms. Its end-to-end ecosystem—from silicon to bundle (CUDA, networking, and AI frameworks)—creates precocious switching costs and a widening competitory moat. With secular request for AI infrastructure inactive successful its aboriginal innings, Nvidia stands to payment from sustained topline maturation and beardown operating leverage. In aboriginal January, a small known Chinese AI company, DeepSeek, released its ample connection exemplary (LLM), DeepSeek-R1, to an unexpecting world. This exemplary was purportedly trained connected precise fewer high-end Nvidia chips and was highly businesslike erstwhile compared to different starring models. This merchandise acceptable disconnected a concatenation absorption wherever investors person had to grapple with the thought that the satellite whitethorn not request arsenic galore GPUs arsenic antecedently thought, which hampered the Nvidia bargain lawsuit and sent the P/E aggregate down to its cheapest level successful the past 5 years."

Stacy Rasgon Says NVIDIA (NVDA) Will Sell ‘Everything They Can Get Out the Door’

A close-up of a colorful high-end graphics paper being plugged successful to a gaming computer.

NVIDIA Corporation (NASDAQ:NVDA) is successful 5th presumption connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 223 hedge money portfolios held NVIDIA Corporation (NASDAQ:NVDA) astatine the extremity of the 4th fourth which was 193 successful the erstwhile quarter. NVIDIA Corporation (NASDAQ:NVDA) reported another grounds 4th successful fiscal Q4 2025 with $39.3 cardinal successful revenues, representing a 78% year-over-year summation and 12% sequential growth. While we admit the imaginable of NVIDIA Corporation (NASDAQ:NVDA) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.