NVIDIA Corporation (NVDA) Rallied On Heightened Investor Confidence In AI Infrastructure Expansion
Baron Funds, an investment management company, released its “Baron Technology Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities rallied in the third quarter following the previous quarter. In the third quarter, the fund returned 5.89% (Institutional Shares) but underperformed the MSCI ACWI Information Technology Index's (the Benchmark) 12.76% return, Invesco QQQ Trust's (the QQQ) 8.94% return, and the S&P 500 index's 8.12% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Baron Technology Fund highlighted stocks such as NVIDIA Corporation (NASDAQ:NVDA). NVIDIA Corporation (NASDAQ:NVDA) offers graphics, compute, and networking solutions. The one-month return of NVIDIA Corporation (NASDAQ:NVDA) was -0.09%, and its shares gained 29.53% of their value over the last 52 weeks. On November 7, 2025, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $188.15 per share, with a market capitalization of $4.581 trillion.
Baron Technology Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its third quarter 2025 investor letter:
"NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor and systems company specializing in compute and networking platforms for accelerated computing. NVIDIA has captured a dominant position in AI infrastructure with a comprehensive portfolio spanning semiconductor accelerators, networking solutions, modular and rack-scale systems, and software. Shares rose during the quarter as investor confidence in AI infrastructure expansion grew. For its July 2025 quarter, NVIDIA reported 56% total and data center revenue growth. Looking forward, NVIDIA disclosed near-term visibility of tens of GWs in AI buildouts, including the 10 GW agreement with OpenAI, with each GW representing an estimated $35 billion total addressable market (TAM). During its August earnings call, NVIDIA’s management declared: “We are at the beginning of an industrial revolution that will transform every industry. We see $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade.” As AI infrastructure investment accelerates, NVIDIA’s leadership continues to strengthen through durable moats across compute silicon, networking, systems, software, and supply chain. We remain confident in AI’s potential to transform the global economy and in NVIDIA’s pivotal role as the leading enabler of that transformation, positioning it to capture significant long-term value in the AI era."
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