1. NVIDIA Corporation (NASDAQ:NVDA)
Market capitalization: $4.98 trillion
Forward P/E: 13.07
Expected forward revenue growth: 74.40%
Number of hedge fund holders: 285
The AI Leader Faces an Increasingly Large Delivery Schedule
NVIDIA Corporation (NASDAQ: NVDA) leads this countdown with a business that continues to turn AI infrastructure demand into extraordinary sales. Fiscal second-quarter 2027 revenue reached $96.2 billion, up 106% year over year, according to its August 26 release. Data center revenue increased 117% to $89 billion, while both GAAP and adjusted gross margins stood at 75%. Chief executive Jensen Huang summarized the commercial argument in unusually compact terms: “Its tokens are productive and profitable. Now, compute is revenue.” The figures support the momentum behind that argument, although the ultimate durability of infrastructure spending will depend on customers continuing to find commercially useful work for the computing capacity they purchase.
Chief financial officer Colette Kress said on the earnings call that management expects approximately 70% revenue growth in fiscal 2028, describing the forecast as “a supply-constrained outlook.” That is an important qualification: management is presenting production and deployment capacity as the immediate limit on growth. The company guided to fiscal third-quarter revenue of $108 billion, plus or minus 2%, without assuming data center compute revenue from China. Huang also said the Vera Rubin platform was in full production. Our interpretation is that the next investment question concerns execution across the entire delivery chain. Strong demand is valuable, but converting it into recognized revenue requires coordinated availability of chips, memory, networking, and customer-ready infrastructure.
The company returned approximately $26 billion to shareholders through repurchases and dividends during the second quarter and finished the period with approximately $99 billion remaining under its repurchase authorization. At the supplied forward P/E of 13.07, the valuation looks far less extravagant than its enormous market capitalization might suggest, provided the earnings estimates behind that multiple materialize. That condition carries considerable weight. The central risk is whether customers sustain spending at levels sufficient to support the forecast, while product transitions and input costs preserve attractive margins. For investors researching AI stocks with earnings growth, the strongest evidence remains the combination of delivered revenue, profitability, and cash generation. The share price will ultimately need those results to keep arriving, even after the excitement becomes familiar.
Ranking rationale: NVIDIA Corporation (NASDAQ: NVDA) ranks first because 285 hedge funds held stakes in the supplied Q2 2026 dataset, the largest count among the selections. Its supplied 74.40% expected revenue growth and 13.07 forward P/E satisfy the screen. First place reflects ownership breadth rather than a forecast of the highest future return.
If you want to read the full article, click here to view: 10 Best Cheap Stocks to Buy for 2027
YOU MUST READ THIS: Q3 2026 Hedge Fund Investor Letters
Click here to continue reading and checkout the 5 Best Cheap Stocks to Buy for 2027.
Disclosure: No material interests to disclose. This article was originally published on Global Market Bulletin.
