A cohort of Wall Street’s most influential billionaire investors has significantly increased their holdings in Nvidia Corp. (NASDAQ:NVDA), signaling strong confidence in the AI chipmaker’s future. The aggressive buying spree coincides with a bold prediction from a prominent tech analyst who sees the company’s market capitalization soaring to $5 trillion.
Check out NVDA’s stock price here.
Billionaires Load Up On Nvidia Stock
According to the second quarter 13F filings, some of the biggest names in hedge funds loaded up on Nvidia shares.
Ken Griffin of Citadel Advisors acquired 6.1 million shares, boosting his firm’s position by 922%. Appaloosa’s David Tepper increased his stake by 483% with the purchase of 1.4 million shares, while Philippe Laffont of Coatue Management added 2.9 million shares.
These moves are noteworthy given the managers’ track records of outperforming the S&P 500.
Nvidia Is ‘Going To $5 Trillion’
Wedbush analyst Dan Ives echoes this institutional bullishness; he believes the company’s fundamentals are stronger than perceived and that demand for its AI chips remains immense.
“I think it’s noise… And I think this is a stock going to $5 trillion,” Ives stated, viewing the company’s financial results as a “validation point” for the ongoing AI trade.
Ives’s projection, while optimistic, is not the most bullish on Wall Street. Technology analyst Beth Kindig of the I/O Fund believes Nvidia will become a $10 trillion company by 2030, citing its rapid product roadmap and the “impenetrable moat” created by its CUDA software platform.
The Bear Case: An AI Bubble?
However, a note of caution persists among some experts. Alex Tsepaev of B2PRIME Group acknowledged Nvidia’s near-term strength but warned of the underlying risk if the AI boom doesn’t fulfill its revolutionary promise.
“If AI turns out to be just a bubble, it can be a collapse for the whole market, and Nvidia in particular,” Tsepaev cautioned, highlighting a potential vulnerability in the chipmaker’s meteoric rise.
Price Action
Shares of NVDA fell 0.25% to end at $185.04 per share on Tuesday, and further fell by 0.029% in after-hours. It has risen 33.79% year-to-date and 39.24% over the past year.
Benzinga’s Edge Stock Rankings indicate that NVDA maintains a stronger price trend in the short, medium, and long terms. However, the stock’s value ranking is relatively poor. Additional performance details are available here.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, fell on Tuesday. The SPY was down 0.37% at $669.12, while the QQQ declined 0.53% to $604.51, according to Benzinga Pro data.
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