This Billionaire Tesla Bull Just Backed Up the Truck on Nvidia Stock
Quick Read
-
Nvidia (NVDA): $4T+ valuation, 1,300% gain in 5 years, 75%+ gross margin, Leo KoGuan bought 1M shares (~$180M)
-
Billionaire Leo KoGuan placed a massive Nvidia bet, rejecting AI bubble concerns and viewing recent stock volatility as opportunity amid strong business fundamentals and high margins.
-
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.
Nvidia (NASDAQ:NVDA) stock has hit a ceiling, and it could stay under it for a while longer, especially since it'll be time in a few months until that next round of quarterly tech earnings. Of course, there's GTC 2026 coming up and, with that, there are rumors surrounding some potential surprises for Jensen Huang and company to pull the curtain on. Perhaps a hyper-efficient inference chip to complement its already powerful lineup that's due for the second half of the year.
If you bought anytime in the past five months, you're probably thinking that it's game over for Nvidia. It's a more than $4 trillion company now, and another doubling of the share price would take it to nearly $9 trillion. That seems a bit outlandish, especially since a bulk of the AI training opportunity is already in the rearview mirror now, right?
As agents and robots look to emerge, perhaps the inference opportunity is enough to keep Nvidia on top of the chip world and the S&P 500. But even with all the bullish tailwinds behind the firm as well as the AI revolution at large, it's hard to justify buying after a 1,300% gain in five years.
READ: The analyst who called NVIDIA in 2010 just named his top 10 AI stocks
Now that the upside momentum is gone, what else is there to be had in this trade?
If you don't look at the stock chart, I think it's safe to say that Nvidia, the company, is actually firing on all cylinders. It's operating at a very high level, and it's continuously raising the bar across the industry. The legend that is Jensen Huang has the vision and execution to keep the firm ahead in this AI arms race. If anything, he sounds like he welcomes the competition in chips.
Nvidia stock might be stalling, but the business isn't
With an enviable gross margin (well above the 75% mark at the time of this writing), Nvidia truly is a standout when it comes to hardware. These are closer to software margins, which, I think, is quite absurd. While there's definitely the software aspect that adds to the Nvidia walled garden, I think the big question that investors should ask themselves is whether that margin is sustainable. If not, what could knock it back down to earth?
Content Original Link:
" target="_blank">
