These Two Billionaires Just Bought Nvidia Stock. Should You?

Core Viewpoint - Nvidia has shown significant growth, evolving from a $350 billion company to a $4.1 trillion valuation, indicating strong investor confidence and potential for further upside [1][3]. Company Insights - Notable hedge fund managers, Daniel Loeb and David Tepper, have recently purchased Nvidia shares, suggesting continued confidence in the company's prospects despite its substantial price increase [2]. - Nvidia's GPUs are essential for advanced computing tasks, particularly in AI training and inference, which positions the company favorably in a rapidly growing market [5]. Market Potential - Global data center spending is projected to surge, with Nvidia estimating that the largest four AI hyperscalers will spend around $600 billion on data centers by 2025, potentially rising to $3 trillion to $4 trillion by 2030 [6]. - If Nvidia captures a significant share of this market, it could generate revenues between $1 trillion to $1.3 trillion by 2030, translating to a compounded annual growth rate (CAGR) of 37% at the low end of projections [8][9]. Investment Rationale - Nvidia's stock is considered a strong buy at current levels due to the immense demand for AI computing power, which is expected to continue growing [7][11]. - Even if market projections are conservative, a CAGR of 19% remains impressive, reinforcing the belief in Nvidia's growth trajectory [10].