A recent analysis has identified NVIDIA Corporation (NASDAQ: NVDA) as a significant player among major company stocks worth considering for investment. Mega-cap technology stocks have been major contributors to the total returns of the US stock market, accounting for approximately 60% of the over 40% gains in the S&P 500 Index from the beginning of 2023 through May 2024.
According to FactSet, during the second quarter of 2024, about 79% of S&P 500 companies reported positive earnings per share (EPS) surprises, while around 60% had positive revenue surprises, with semiconductor stocks particularly driving these results. The rise in demand for AI and related technologies has also supported growth in sectors like utilities, benefiting from increased electricity demand due to AI data centers.
The upcoming third-quarter earnings season is anticipated to show a decline in estimates, with analysts revealing that expected earnings growth has decreased from an initial forecast of 6.9% to 3.9%. Concerns regarding economic conditions, persistent inflation, higher interest rates, and geopolitical risks are contributing factors. Additionally, uncertainty linked to the US presidential elections adds to the overall pessimism surrounding market estimates.
Analysts emphasize that as election day approaches, volatility and uncertainty are likely to spike, potentially impacting consumer spending and corporate investments. An index measuring economic policy uncertainty, created by academic economists, suggests that such uncertainty influences economic behavior, often leading to reduced spending and investment during election seasons.
Brandywine Global Investment Management has pointed out the negative impact of the current election cycle on consumer confidence, noting a rare divergence in economic perception indexes which indicates growing consumer anxiety. Historically, measures of economic policy uncertainty tend to increase significantly in November during election years, particularly when races are tight and polarized.
Despite these concerns, analysts suggest that investors should continue to invest in large, established companies with strong performance histories. AI advancements and fiscal growth in early 2024 have contributed to rising stock prices, especially amongst technology firms, with expectations that other sectors may soon benefit from this uptrend.
The study on the “7 Best Big Company Stocks to Buy Now” utilized stock screening tools to identify large-cap firms favored by elite hedge funds. The strategy has shown success in outperforming market indices.
Specifically focusing on NVIDIA Corporation, it has established itself as a leader in high-performance graphics processing units (GPUs). The company’s sustained investments in software advancements have enabled it to outpace traditional hardware performance. As demand for AI applications continues to surge, NVIDIA’s powerful chips are positioned to capture significant market share, particularly in data centers.
NVIDIA forecasts revenue of approximately $32.5 billion for the third quarter of 2025 and has returned substantial capital to shareholders. Recent analyst ratings, including a price target increase from JPMorgan Chase & Co., reflect growing confidence in NVIDIA’s market position, especially amid the rise of AI technologies that rely heavily on its products.
NVIDIA ranks fifth on the list of top company stocks to consider for purchase, though analysts caution that some undervalued AI stocks may offer superior short-term returns.