Nvidia Corp. NVDA 27.5% The post-earnings recovery saw the stock gain 166.5% year-to-date.and one of the biggest beneficiaries is a secretive, lesser-known US hedge fund.

What happened: Jennison Associates reaped a fluke as his 23 million-share position in Nvidia grew after the chipmaker’s stunning rally. The message was first reported by Business Insider.

Jennison’s 13-F filing shows that the company owned 23.3 million shares of Nvidia valued at $3.4 billion at the end of the fourth quarter of 2022.

Quarterly holdings released for the first quarter showed a slight decrease in holdings to 22.64 million Nvidia shares. Still, the value of the position increased to $6.29 billion.

Since the end of the quarter, shares of Nvidia are up 40%. The same 22.64 million shares would now be worth $8.82 billion. That represents an increase of over $5.42 billion, or 159%, since the end of the fourth quarter.

See also: Best Semiconductor Stocks

Jennison’s stake in Nvidia is about 1%, and the hedge fund is among the company’s top 10 shareholders, according to reports CNN business. According to Business Insider, Nvidia accounted for 5.8% of the investment firm’s $100 billion U.S. stock portfolio at the end of March.

Why it matters: Following Nvidia’s results, the selling firms have scramble to raise price targets on the stock, underscoring their confidence in further upside. Rosenblatt Securities now has a maximum price target of $600 for the stock.

Nvidia’s chips support the most generative AI — a technology that’s garnering a lot of interest.

Nvidia closed Friday’s session at $389.46, up 2.54% Benzinga Pro dates.

Continue reading: Cramer Praises Nvidia’s “Predictably Fabulous” Jensen Huang: “Visionary CEO With Great Track Record”

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