Top ESG Fund Managers Love and Own These 5 Blue Chip Leaders

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Nvidia

This sector leader made a huge purchase in 2019 that is proving to be a solid tailwind for the company, and 31% of the ESG funds own the stock. Nvidia Corp. (NASDAQ: NVDA), which is a company that rarely has grown through acquisitions, bought Mellanox and paid a whopping $6.9 billion in cash in a deal that finally closed back in April of 2020.
In what actually was somewhat of a duel, Nvidia knocked out Intel in its bid to buy the chipmaker, and the deal has helped Nvidia boost its business of making data center chips that help power cloud computing.

Mellanox’s BlueField intelligent network adapters are another version of data center co-processing acceleration. Top Wall Street analysts feel the combination of Nvidia and Mellanox made the company a definite threat to Intel’s data center CPU dominance of workloads.

The company recently outlined a $100 billion total addressable market (TAM) for its data center business by 2024, or twice the $50 billion TAM outlined at its last investor day. The upside includes $20 billion from core Mellanox networking, $10 billion from new class of data processing units and another $10 billion from emerging edge AI EGX computing platform.

Top Wall Street analysts continue to believe the company’s exposure to some of the most exciting areas of growth in tech (gaming/esports, autonomous driving, artificial intelligence and server acceleration) will drive well above industry growth over the next few years.

BMO Capital Markets has set a massive $1,000 price objective on Nvidia stock. The $747.90 consensus target is less than Thursday’s close at $796.11 per share.

Visa

This top credit card issuer is becoming a huge leader in digital pay, and 32% of the funds own the shares. Visa Inc. (NYSE: V) operates the world’s largest retail electronic payments network. The company provides processing services and payment product platforms, including consumer credit, debit, prepaid and commercial payments, that are offered under Visa and related brands.

According to Nielsen estimates, the company is the largest global credit network (as measured by volume) and the second-largest global debit network. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products.

Shareholders receive a 0.53% dividend. The BofA Securities price target is $264. The posted consensus target is up at $267.77, and Visa stock closed at $236.61 on Thursday.

While not radically different from the holdings of other mutual fund managers and hedge funds, for investors looking for ESG companies, the fact that these are the top holdings of so many of these managers makes them good bets from a socially responsible angle.