Some Indian MFs set to gain as Nvidia crosses $1,000-mark on yet another strong quarter

Back in February 2024, NVIDIA rose to become the first semiconductor firm to hit $2 trillion in market capitalisation, making it the fourth most valuable company in the world behind Microsoft, Apple, and Saudi Aramco (Saudi Arabian Oil Company). As of May 2024, the market cap for NVIDIA is around $2.34 trillion.

Nvidia is back in the news after the chipmaker's stocks crossed the $1,000-mark on May 23 for the first time, beating market expectations for its first quarter results. This, in turn, bodes well for the Indian mutual funds that have exposure to the chipmaker.

As of April 2024, most large AMCs had exposure to Nvidia. Topping the list is Motilal Oswal with an exposure of around Rs 463 crore, followed by Mirae at around Rs 284 crore, Franklin Mutual Fund at around 217 crore and Kotak Mutual Fund with exposure of around Rs 188 crore.

Also read: Explained | What drove Nvidia’s march to $2 trillion m-cap, and what’s next for this AI play?

Amongst AMCs, Axis MF is the only one with exposure through the direct route - Axis Special Situations Fund (Rs 10.3 crore), and Axis Growth Opportunities Fund ( Rs 115.8 crore). The overall exposure in the two schemes to Nvidia is nearly 1 percent each, Moneycontrol had previous reported.

For the first quarter ending April 2024, Nvidia reported a revenue of $26 billion, up 18 percent from the previous quarter and around 262 percent from a year ago period. They have also announced a 10-for-1 stock split and a 150 percent increase in its quarterly dividend to 10 cents per share.

For the quarter, GAAP earnings per diluted share was $5.98, up by 21 percent from the previous quarter and up 629 percent from a year ago while non-GAAP earnings per diluted share was $6.12, up 19 percent from the previous quarter and up 461 percent from a year ago.

Back in February 2024, Nvidia rose to become the first semiconductor firm to hit $2 trillion in market capitalisation, making it the fourth most valuable company in the world behind Microsoft, Apple, and Saudi Aramco (Saudi Arabian Oil Company). As of May 2024, the market cap for Nvidia is around $2.34 trillion.

In a statement, Jensen Huang, founder and CEO of NVIDIA noted that the next industrial revolution has begun as companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence. “AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities," he said.

Investors in India interested in investing in the stock can look at Fund of Funds (FoFs) and exchange-traded funds (ETFs) with exposure to the stock. Platforms such as Groww, Angel One etc also provide opportunities for investors looking to directly invest in the stock. Another route is to open accounts with international brokerages.

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