Key Points
Prominent billionaire investors, Daniel Loeb of Third Point Capital and David Tepper of Appaloosa Management, have been increasing their positions in Nvidia (NASDAQ: NVDA) over the past two quarters. This comes after the company’s stock surged 1,100% since 2022, despite intensifying competition in the AI chip market.
Nvidia’s data center revenue rose 66% year-over-year in the last quarter, and the number of developers using its CUDA platform increased to 5.9 million in 2024. These developments highlight Nvidia’s ability to maintain its competitive edge as alternative chip options emerge. Currently, Nvidia trades at a forward price-to-earnings ratio of under 25, making it a potentially attractive investment.
