This Under-The-Radar Hedge Fund Quietly Amassed Over $5 Billion In Gains Following Nvidia's Stratospheric Rally

Zinger Key Points
  • Nvidia shares are up over 166% in the year-to-date period.
  • One analyst has a price target that suggests an over 54% upside potential.

Nvidia Corp. NVDA 27.5% post-earnings rally took the stock's year-to-date gain to 166.5%, and one of the biggest beneficiaries is a secretive, lesser-known U.S. hedge fund.

What Happened: Jennison Associates reaped a windfall, as its 23-million-stock position in Nvidia swelled following the chipmaker's breathtaking rally. The news was first reported by Business Insider.

The 13-F filing by Jennison shows that it held 23.3 million shares of Nvidia, valued at $3.4 billion, at the end of the fourth quarter of 2022.

Quarterly holdings disclosed for the first quarter showed a modest reduction in holdings to 22.64 million Nvidia shares. Still, the value of the position spiked to $6.29 billion.

Since the end of the quarter, Nvidia's shares have jumped 40%. The same 22.64 million shares would now be worth $8.82 billion. This translates to an increase of over $5.42 billion or 159% since the end of the fourth quarter.

See Also: Best Semiconductor Stocks

Jennison's stake in Nvidia is about 1%, and the hedge fund is among the top 10 shareholders in the company, according to CNN Business. Nvidia made up 5.8% of the investment firm's $100 billion U.S. stock portfolio at the end of March, Business Insider noted.

Why It's Important: Following Nvidia's results, sell-side firms have scrambled to raise the price targets for the stock, underlining their confidence in further upside potential. The stock now has a Street-high price target of $600 from Rosenblatt Securities.

Nvidia's chips power most generative AI – a technology that is seeing frenzied interest.

Nvidia closed Friday’s session at $389.46, up 2.54%, according to Benzinga Pro data.

Read Next: Cramer Hails Nvidia’s ‘Predictably Fabulous’ Jensen Huang: ‘Visionary CEO With A Great Track Record’

Photo: Shutterstock

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