Billionaire David Tepper Loaded Up on Nvidia Shares in 2025. Should You Follow Him?

Core Viewpoint - Nvidia's stock is currently considered undervalued, presenting a buying opportunity for investors as it is approximately 10% off its all-time high, trading at 24 times next year's earnings, which is lower than competitors like Apple and Alphabet [10][11]. Company Insights - Nvidia has seen a significant increase in demand for its GPUs, with CEO Jensen Huang stating that the company is "sold out" of cloud GPUs, indicating strong market demand despite concerns about an AI bubble [5][6]. - The company is positioned to benefit from a massive data center buildout, with projections indicating that global data center capital expenditures will rise to $3 trillion to $4 trillion annually by 2030, compared to an expected $600 billion for 2025 [8][12]. Investment Activity - Billionaire hedge fund manager David Tepper has significantly increased his holdings in Nvidia, from 300,000 shares at the end of Q1 2025 to 1.9 million shares by the end of Q3 2025, making it his fund's fourth-largest holding [2][9]. Market Position - Nvidia's technology stack remains superior in the market, and despite emerging competition, its GPUs continue to be the preferred choice for AI computing needs [4][6]. - The current stock price decline is viewed as a favorable entry point for investors, especially given the anticipated growth in 2026 and beyond [9][12].