NVIDIA Corporation (NVDA) is a top safe stock pick for hedge funds

From Yahoo Finance: 2025-04-27 12:01:00

In a volatile market, hedge funds are seeking safe stocks for reliability and resilience. NVIDIA Corporation (NVDA) stands out with 223 hedge funds holding shares and a forward dividend of $0.04. The tech giant is known for GPU-accelerated computing, innovation, and diversification into AI, robotics, and autos, making it a strong investment choice.

Hedge funds are dumping consumer discretionary stocks in anticipation of economic trouble, signaling a possible recession. A Goldman Sachs report shows that the top 50 stocks preferred by hedge funds have collectively returned 10% in 2025, outperforming the market’s 3% gain. Low-risk stocks are proving to outperform high-risk stocks in various global markets, offering higher returns with lower risk.

Insider Monkey compiled a list of the 11 best safe stocks to buy according to hedge funds, focusing on mega-cap stocks with positive returns and next-year revenue growth. These stocks offer low volatility and high safety, attracting investors seeking reliability. Following hedge funds’ stock picks has shown to outperform the market, with a strategy returning 373.4% since May 2014.

NVIDIA Corporation (NVDA) ranks 5th on the list of best safe stocks to buy according to hedge funds. The company’s focus on AI, innovation, and diverse product lines positions it as a strong investment option. With a strategic three-year plan and a talented workforce, NVDA is poised for growth and success in the evolving digital landscape.

Read more: Is NVIDIA Corporation (NVDA) the Best Safe Stock to Buy According to Hedge Funds?