Is NVIDIA Corporation (NVDA) The Best Stock to Buy According to Billionaire Ray Dalio? – Yahoo Finance
Recently I published the list Best stock to buy according to billionaire Ray Dalio. In this article, we'll look at where Nvidia Corporation (NASDAQ: NVDA) plays against other best stocks, according to billionaire Ray Dario.
With over 50 years of experience, Ray Dario is undoubtedly one of Wall Street's most influential investors. Accurately predicting the 2008 financial crisis, he often seeks insights and directions to take when markets are uncertain. He is the brain behind him Bridgewater Associatesa hedge fund he founded in 1973, leveraging a variety of strategies, including pure alpha and macroeconomic analysis, to narrow down the best returns in the market.
Although Dario abandoned his CEO role at Bridgewater Associates in 2017, his feelings still influenced the hedge fund's investment strategy and play. Similarly, hedge funds remain on the game, generating an average return of 11.5% per year, while leveraging pure alpha strategies.
Outperformance is because the entire stock market is uptrend amid artificial intelligence-driven implementation. Similarly, the US economy, which eschews the recession amid high interest, is reinforcing feelings about market risk-taking.
The overall stock market has been on the rise, but billionaire Ray Dalio is ringing the bells of warning about the imminent debt crisis. The fact that the US debt-to-GDP ratio has risen to over 122% poses a significant risk, according to the founder of Bridgewater Associates.
Over the past two quarters, GDP has been steadily increasing, with unemployment and inflation being relatively stable. But Ray Dalio warns that US national debt is an immediate issue and a problem that will rock boats. According to DALIO, the US deficit should fall from 7.2% of domestic production to around 3% of GDP.
“We have a very serious supply and demand issue. Some people think we'll handle it because we've dealt with it so far. I don't think we understand the dynamics of debt,” Dario said.
Dario's attention has been struggling to maintain a significant tax cut in President Donald Trump's administration, while also struggling to cut its annual deficit, which recently reached $1.8 trillion.
According to Dario, President Trump has undoubtedly shown that he is not afraid to use economic pressure to promote his purposes. His executive order investigation is to take on duties and is sufficient evidence that he has what he needs to reduce the US deficit and increase debt levels.
But the oval office may have lost some of its goodwill in a country that appears to have rushed to aid in pain through trade tariffs. Uncertainty about trade policy exacerbates the uncertainty of Wall Street investors as they worry about how the potential trade war will affect the global economy.
Tariffs on Canada, Mexico and China are part of Trump's trade policy and aim to readjust the economy to American advantages. Nevertheless, they could cause economic slowdowns and higher inflation.
Dario continues to worry about US debt levels and the uncertainty caused by the trade war, but he remains bullish about the US stock market. Bridgewater Associates' portfolio appears to benefit from the AI spectacle, which means there is a major exposure to high-tech stocks.
According to billionaire Ray Dario, they selected the top 10 shares in Bridgewater Associates' portfolio at the time of the 2024 13F filing in the fourth quarter to create a list of the best stocks to buy. We settled in the 10 largest holdings of hedge funds and looked into why they stand out as the top stock pick for Raydario. Finally, we ranked stocks in ascending order based on the value of Bridgewater Associates Equity Stakes. Additionally, as of the fourth quarter of 2024, we mentioned hedge fund sentiment around each stock.
At Insider Monkey, hedge funds are obsessed with stocks stacked on them. The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter's strategy was to select 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (For more information, please see here).
Is Nvidia Corporation (NVDA) the best stock to buy, according to billionaire Raydario?
Close-up of a colorful high-end graphics card connected to a gaming computer.
Bridgewater Associates Equity Stakes: $469.66 million
Number of hedge fund holders: 223
NVIDIA Corporation (NASDAQ: NVDA) is a technology and computing infrastructure company that provides graphics, computing and networking solutions. Its GPUs are in strong demand for data center power supply amid the artificial intelligence boom. According to billionaire Ray Dalio, it is one of the best stocks to buy as the biggest beneficiary of rising AI infrastructure spending.
Nvidia Corporation (NASDAQ: NVDA) is an AI (AI) King, because the Graphic Processing Unit (GPU) serves as the basis for AI infrastructure. The company's strong demand for AI chips led to revenues reaching $39.3 billion in the fourth quarter of fiscal year 2025, up 78% year-on-year. Adjusted revenues rose by an astonishing 71% to $0.89 per share.
Nvidia could surpass its forecast as it increases supply of recent generations of Blackwell processors to meet the rapidly growing demand from its customers. More importantly, Blackwell's adaptability will help NVIDIA Corporation (NASDAQ: NVDA) maintain its key position in the AI chip industry. Similarly, revenue is expected to increase by 50% this year.
Overall, NVDA 2nd place Billionaire Ray Dalio said the list of best stocks to buy acknowledges the potential of NVDA investments, but our belief lies in the belief that AI stocks provide higher returns and hold a greater promise in doing so within a shorter time frame. If you're looking for AI stocks that are more promising than NVDA, but trade less than five times the revenues, Cheapest AI stocks.
