Billionaire Leo KoGuan Expands Nvidia Stake
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 04 2026
0mins
Source: CNBC
- Nvidia Stake Increase: Billionaire Leo KoGuan purchased 1 million shares of Nvidia this week, expanding his investment in artificial intelligence and indicating his belief that AI investment is still in its early stages.
- Comparison with Tesla: KoGuan described Nvidia as the 'foundational layer' of AI, contrasting it with Tesla, which he views as 'physical AI,' highlighting his understanding of the distinct roles of both companies.
- Market Reaction Analysis: Despite Nvidia's recent quarterly report failing to boost its stock price, analysts remain bullish, noting that markets are focused on hyperscaler capital spending and venture funding levels, with Nvidia's valuation still attractive.
- Future Outlook: JPMorgan strategists noted that investors are seeking greater clarity on the 2027 data center growth outlook at the upcoming GTC conference, especially as major hyperscalers have significantly increased their capital expenditure budgets.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 197.580
Low
200.00
Averages
264.97
High
352.00
Current: 197.580
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Leadership: Nvidia remains the undisputed leader in the GPU market, and with hyperscalers investing heavily in AI infrastructure, this trend is expected to continue, further solidifying its market dominance and driving future growth.
- Relative Valuation: Despite Nvidia's stock appearing cheap relative to its growth potential, trading at a forward P/E of 22.2x compared to the tech sector's average of 22.4x, this suggests the market may be undervaluing its future growth prospects.
- Investor Confidence: Although the stock has seen recent declines, analysts believe Nvidia can still deliver above-average returns, prompting investors to seize the opportunity to buy its shares for solid returns in the coming years.
See More
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- Strong Financial Performance: The latest financial report reveals an 85% year-over-year revenue increase and a 55.7% adjusted net margin, showcasing robust profitability despite declining sales in China and rising competition.
- Future Earnings Expectations: Analysts project Nvidia's earnings at $8.97 per share for this fiscal year and $12.76 for the new fiscal year, reflecting optimism about its growth, even as the current stock trades at less than 22 times earnings.
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- Strong AWS Performance: In Q1 2026, AWS revenue grew 28% year-over-year to $37.6 billion, with CEO Andy Jassy noting this is the fastest growth in 15 quarters, underscoring AWS's robust standing in the cloud computing market.
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- AI Hype-Driven Market Sentiment: Burry argues that Micron's recent rally is primarily fueled by investor FOMO and the greater fool theory rather than rational analysis, suggesting a lack of confidence in the company's fundamentals.
- Short and Long Position Strategy: While shorting Micron, Burry has increased his stakes in PayPal, Sprouts Farmers Market, Zoetis, Fannie Mae, and Freddie Mac, reflecting his optimistic outlook on these companies' long-term prospects.
- Retail Sentiment and Market Reaction: Despite Burry's bearish stance on Micron, retail sentiment remains bullish, with message volume surging by 260% over the past 90 days, indicating sustained market interest in the stock.
See More
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- Earnings Impact: Micron's upcoming earnings report is highly anticipated, with the stock having surged 270% this year; a disappointing performance could exacerbate recent market sell-offs, significantly affecting overall market sentiment.
- Surging Profit Expectations: Wall Street forecasts a staggering 1,000% increase in earnings per share for Micron, indicating a successful transformation in the high bandwidth memory sector, with projected quarterly revenues exceeding $35 billion, showcasing robust market demand and pricing power.
- Increased Competitive Pressure: Despite Micron's dominance in the high-end memory market, it faces escalating competition from Chinese rivals, particularly CXMT, which is building a massive production facility aimed at flooding the market with low-cost products, potentially threatening Micron's market share.
- Alphabet Joins Dow: Alphabet is set to replace Verizon in the Dow Jones Industrial Average, increasing its index weighting to 4%, highlighting the growing significance of tech stocks in traditional indices and reflecting the market's increasing focus on the technology sector.
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