Artisan Partners Artisan Focus Fund Q1 2023 investor letter highlights NVIDIA Corporation (NVDA) as a winner due to the expected growth of accelerated card sales from $5.2B
Artisan Focus Fund Highlights NVIDIA Corporation as Attractive Investment Opportunity in Q1 2023 Investor Letter
Artisan Partners, an investment management company, recently released its “Artisan Focus Fund” first quarter 2023 investor letter. The report highlights that the first quarter was volatile and macro-driven, with the fund’s Investor Class fund ARTTX returning 3.34%, Advisor Class fund APDTX posting a return of 3.39%, and Institutional Class fund APHTX returning 3.38%. This is compared to a return of 7.50% for the S&P 500 Index.
In the same report, Artisan Focus Fund highlighted stocks like NVIDIA Corporation (NASDAQNVDA) in the first quarter of 2023. NVIDIA Corporation provides computer graphics processors, chipsets, and related multimedia software. On June 22nd, NVIDIA Corporation (NASDAQNVDA) stock closed at $430.25 per share. Its one-month return was 10.47%, and its shares gained 151.23% of their value over the last year.
According to Artisan Focus Fund’s first quarter investor letter, accelerated card sales are expected to grow from $5.2B to ~$50B in 2026. Last year this figure was expected to be $15B-$17B, signifying a massive inflection point for this industry which almost entirely accrues to NVIDIA Corporation (NASDAQNVDA). Advanced Micro Devices (AMD) currently does not have an AI-specific accelerated card but should be in the market by the end of the year.
Despite AMD’s upcoming release, Nvidia’s software is still seen as being “the only game in town” according to Artisan Focus Fund’s Q1 report on NVDIA Corporation (NASDAQNVDA), and it is believed that it will ultimately be layered on top of AMD or any other cards that come up. The report also suggests that they have sized this market more accurately than other research providers, giving them an advantage in executing and generating alpha in this area over the coming years.
According to Insider Monkey’s database, NVIDIA Corporation (NASDAQNVDA) is in 17th position on their list of 30 Most Popular Stocks Among Hedge Funds. As per their records, 132 hedge fund portfolios held NVIDIA Corporation (NASDAQNVDA) at the end of the first quarter of 2023, which was up from 106 in the previous quarter. This suggests that there is growing interest in NVDIA Corporation (NASDAQNVDA) among hedge funds.
In conclusion, Artisan Focus Fund’s Q1 report highlights NVIDIA Corporation (NASDAQNVDA) as a promising investment opportunity due to its expected growth and dominance in the accelerated card industry. Additionally, Insider Monkey’s database shows that many hedge funds are taking notice of this trend and investing accordingly. With these factors combined, it seems that NVDIA Corporation (NASDAQNVDA) may be worth considering for those looking to invest in this sector.