Growth investor Sustainable Growth Advisers named Nvidia a top contributor to its Q2 2026 portfolio performance, citing strong results and a new sales breakdown that lines up with the company's long-term outlook. The letter points to $60 billion in annualized networking sales, a new Vera processor expected to add $20 billion, and stepped-up buybacks.
Investor letter cites strong quarter
Sustainable Growth Advisers (SGA), an investment management firm, named Nvidia a top contributor to its second-quarter 2026 performance in its U.S. Large Cap Growth Strategy investor letter. According to SGA: "was a top contributor to performance during the quarter". The firm said the company introduced a new sales breakdown showing demand from the largest cloud companies, with the numbers lining up with its long-term outlook.
Nvidia closed at $230.36 per share on September 04, 2026. The stock's one-month return stood at 5.89%. Shares gained 36.87% over the past 52 weeks. Nvidia's market capitalization reached $5.56 trillion.
Networking and buybacks in focus
SGA's letter said management reiterated expectations for sustained multi-trillion-dollar AI spending over the long term, with growing contributions from both hyperscaler and non-hyperscaler customers. Networking sales now run at about $60 billion annualized. The firm expects the new Vera processor to add $20 billion.
Capital returns also stepped up. SGA noted a commitment to return at least half of cash to shareholders, with about $25 billion of buybacks planned each quarter. The firm said it raised its target for the stock and added to its position during the quarter, maintaining an above-average weight.
Hedge fund interest keeps rising
Nvidia sits in fourth position on Insider Monkey's list of the 40 most popular stocks among hedge funds heading into 2026. By the end of Q2, 285 hedge fund portfolios held Nvidia, up from 275 in the prior quarter. SGA's own U.S. Large Cap Growth Strategy portfolio returned 6.8% gross and 6.6% net in Q2, trailing the Russell 1000 Growth Index's 16.7% return and the S&P 500's 15.2% return, a gap SGA attributed to momentum dynamics and the divide between AI capex beneficiaries and the rest of the market.
Source: Insider Monkey
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