Sands Capital released its Q3 2025 investor letter, highlighting the recovery of U.S. large-cap growth equities. The portfolio returned 6.3% in the quarter due to strong corporate earnings and investor enthusiasm around AI. NVIDIA Corporation (NASDAQ:NVDA) was mentioned as a top holding, with a one-month return of -12.93% and a market capitalization of $4.381 trillion.

In the investor letter, Sands Capital praised NVIDIA Corporation (NASDAQ:NVDA) for its strong performance in enabling the future of computing. The company’s data center segment saw significant growth, excluding China, and is expected to further increase. NVIDIA’s upcoming Vera Rubin “superchip” is anticipated to boost compute performance and expand use cases, supporting higher pricing.

NVIDIA Corporation (NASDAQ:NVDA) ranks 5th among the 30 Most Popular Stocks Among Hedge Funds. In the second quarter of fiscal 2026, NVIDIA reported $46.7 billion in revenues, surpassing expectations. While NVIDIA shows promise as an investment, other AI stocks may offer greater upside potential with less downside risk.

Read more at Yahoo Finance: Sands Capital Select Growth Strategy’s Top Absolute Individual Contributor: NVIDIA Corporation (NVDA)