This Billionaire Has Bought $442 Million Worth of Nvidia Stock This Year. Does He Know Something We Don't?

Key Points

• Demand for Nvidia's GPUs remains strong.

• Nvidia's management projects massive growth over the next few years.

• Investors can still buy shares and make a fantastic return if management's projections come true.

• 10 stocks we like better than Nvidia ›

Nvidia (NASDAQ: NVDA) has been at the top of the list of best artificial intelligence (AI) stocks to buy over the past few years. Anyone who has bought shares at nearly any time since 2023 has made money, but after the incredible run it has been on, it would be logical to think that there isn't much gas left in the tank.

However, multiple signs point to Nvidia's continued dominance - so much so that some of the largest investors are starting new positions in Nvidia.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Daniel Loeb of Third Point began accumulating Nvidia shares at the start of 2025, purchasing $442 million worth over the past two quarters, after owning none at the beginning of 2025. This represents nearly a 6% position sizing within his fund, indicating a clearly bullish bet.

So far, it has worked out well for him, but is there something going on that others don't know about?

Global data center spend is expected to rise dramatically over the next few years

Nvidia manufactures graphics processing units (GPUs) , which are the computing muscle behind today's AI models. GPUs can process multiple calculations in parallel, making them ideal for computing tasks such as AI training and inference.

Although Nvidia has already sold a lot of GPUs, it is scheduled to sell even more over the next few years. The demand for AI computing power has been insatiable so far. Even though the biggest AI hyperscalers plan to spend $600 billion on data center capital expenditures this year and even more next year, Nvidia believes global data center spending can rise to $3 trillion to $4 trillion by 2030.

That's a significant increase, and if this projection proves to be true, it would make Nvidia an even bigger winner for investors.

So if you think you're too late to the party, don't. Even billionaire investors like Daniel Loeb can get in much later than many investors and still benefit from Nvidia's rise.

Additionally, this information is publicly available, so billionaire investors are not acting on any additional information. Nvidia has a lot of room to grow if they are right, but what kind of increase should investors expect?

Nvidia will crush the market if this projection comes true

Using the bottom end of the global data center capital expenditure range of $3 trillion, past performance suggests that Nvidia captures about a third of total revenue. That would indicate revenue of $1 trillion. If Nvidia can maintain its 50% profit margins , that would indicate profits of $500 billion by 2030.

Currently, Alphabet is the most profitable company in the world, generating nearly $116 billion in profits over the past 12 months. For Nvidia to be that much larger is hard to believe, but it's what Jensen Huang and his team at Nvidia are projecting.

If you apply a 30 Price to earnings ratio to this, that indicates that Nvidia would be a $15 trillion company, more than triple from Nvidia's current $4.3 trillion market cap.

That's a major upside, and if Nvidia delivers a triple over the next five years, investors everywhere would benefit due to Nvidia's inclusion in S&P 500 (SNPINDEX: ^GSPC) . Still, because the market tends to double only once every seven years, it would be logical to overweight Nvidia due to its potential upside.

I think Nvidia is as good a buy as it was during any time over the past two and a half years, and investors who believe the AI arms race will continue should be scooping up shares right now. just like billionaire Daniel Loeb did in 2025 .

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Keithen Drury has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy .

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"I am highly alarmed by the proposed changes to retirement accounts": I don't want bitcoin or private equity in my 401(k). What can I do?

Dear Quentin,

I am highly alarmed by the proposed changes to retirement accounts. How do I keep my retirement out of harm's way?

Historically, the Employee Retirement Income Security Act of 1974 held plan administrators to a strict fiduciary standard. Following an August 2025 executive order signed by President Donald Trump, the Trump administration and the private-equity industry are taking steps to allow private equity to be included in retirement accounts.

Supporters argue that it would give everyday investors access to the same higher-yield assets that have traditionally only been available to institutional investors and the very wealthy. To my ears, the pitch is "come play with the high rollers of Wall Street and we will promise you the moon." My motto for decades has been slow and steady mutual funds.

Allowing bitcoin and private equity into my portfolio is a hard no. What are the options for safeguarding my autonomy over my funds?

Retiree

Related: "It's keeping me up at night": My brother sold his share of the family farm and lost the rest in a divorce. He says I owe him.

You can email The Moneyist with any financial and ethical questions at qfottrell@newsrealtime . The Moneyist regrets he cannot reply to questions individually.

Dear Retiree,

The main thrust of your letter is indeed correct. Last month, Trump signed an executive order titled "Democratizing Access to Alternative Assets for 401(k) Investors," which would allow the U.S. Department of Labor and other federal agencies to create more exposure for "alternative assets," including private equity, real estate, and digital assets, for defined-contribution retirement plans.

The White House states that fiduciaries of 401(k) and other defined-contribution retirement plans "must carefully vet and consider all aspects of private offerings, including investment managers' capabilities, experiences, and effectiveness managing alternative asset investments. They do so to protect the Americans whose retirement accounts they administer and for whom they have fiduciary duties to invest safely and prudently."

An important caveat: The executive order is designed to provide guidance and does not itself constitute a piece of legislation. Instead, it directs the Securities and Exchange Commission to consult with the Department of Labor to explore more ways to allow 401(k) plan participants to have greater access to alternative assets. The Department of Labor may issue proposed legislation and invite members of the public to comment.

The executive order is designed to provide guidance and does not itself constitute a piece of legislation.

Law firm Cleary Gottlieb recently advised investors to wait and see how the Department of Labor and the SEC respond. "We expect to see an increase in partnerships between private funds, investment managers and traditional 401(k) platform providers," it says. "We may also see a greater number of plan fiduciaries willing to provide participants with access to alternative assets (including private funds) through managed accounts within 401(k) plans."

Regarding your point, it is more likely that you will be given the option of how you would like your retirement funds to be invested, if and when there is more cooperation between private funds, investment managers, and traditional 401(k) providers. "These managed accounts typically require participants to opt-in, thus creating a natural avenue to ensure appropriate disclosures are provided and to mitigate claims from 'unknowing' participants," Cleary Gottlieb says.

The problem for retirees and retail investors like yourself and millions of other Americans is one of transparency, low volatility and low liquidity. When you invest in the Dow Jones Industrial Average, S&P 500, or Nasdaq, stocks are openly traded. Private equity, however, puts money in private firms that are not legally required to offer shares or detailed financial accounting to the wider public. You can read more about the implications of the executive order here .

It could take years for this to actually happen, so do not panic. "While that [executive order] may ultimately result in retirement-plan fiduciaries choosing to include alternative investment options within the plans they oversee, you should take some solace in the fact that plan administrators will continue to be held to a fiduciary standard, and it should not limit your access to more traditional investment choices," says Martin Schamis, head of wealth planning at Janney Montgomery Scott in Philadelphia.

Diversification is the ultimate goal

You should continue to have access to a selection of investment choices to build a suitably diversified portfolio within your retirement plan even if alternatives are added to the lineup," Schamis adds. "We generally suggest you work with a professional to determine the appropriate allocation for your situation. Traditionally speaking, your target allocation should include broad asset classes consisting of domestic and international equities and fixed income.

Diversification is, for the most part, a positive thing for your retirement funds, and this provides a new outlet for retail investors. "Alternative assets, including private equity, real estate, commodities, and other investments can provide additional diversification within a portfolio, both serving to reduce risk and potentially increasing return," he says. "The traditional hurdle for most investors in accessing these investments has been one of scale and costs."

Talk to your adviser about these options. "If one outcome of this order is to broaden access at reasonable cost to nontraditional investments, it is possible that including them in your overall allocation could result in a better-diversified portfolio," Schamis says. "And in any event, you should continue to have control over your own allocation, along with a broad selection of traditional investment options to build the appropriate portfolio."

Some argue that retail investors are at a financial disadvantage compared with wealthy institutional investors.

Mayer Brown, an international law firm, outlined some of the aspects of this executive order, and its limitations, which may put your mind at ease — at least for now. "The order does not change existing law regarding the types of investments that may be offered in a defined contribution plan. Investment products that include private market assets have been around for nearly two decades," the law firm says.

Nor does the order suggest that private market assets should be offered as standalone investments in plan investment lineups. Rather, the order recognizes that private market assets are typically offered as part of a custom target-date fund, a multi-asset class fund, or as part of an account that is managed by a sophisticated investment manager," it adds. "The order recognizes that retirement investing appropriately considers the long-term time horizon.

The order also aims to address excessive fee litigation and wants the Department of Labor to help fiduciaries and plan sponsors comply with their obligations when navigating alternative investment products, Mayer Brown adds. "The order opens the path for DOL to issue new regulations and guidance that may help curb some of this litigation, including providing certain protections for plan sponsors and fiduciaries who consider private market assets," it says.

Most retail investors and employer-based retirement plans do not have exposure to private equity within their 401(k) plans, which some experts argue puts most Americans at a financial disadvantage compared with wealthy institutional investors and those who participate in public-pension plans. But in any case, there is a long regulatory process ahead before you can expect to see any possible changes to your 401(k)'s exposure to alternative assets.

Previous columns by Quentin Fottrell:

I'm 67. My wife, 48, is financially illiterate. How do I teach her to manage our money? After all, I won't be around forever.

"He is increasingly angry": My troubled son lives with me. How do I ensure he is financially secure after I die?

"I am my mother's caregiver": My mom, 93, added my name to her retirement accounts. Will she qualify for Medicaid?

Check out the Moneyist private Facebook group, where members help answer life's thorniest money issues. Post your questions, or weigh in on the latest Moneyist columns.

By emailing your questions to the Moneyist or posting your dilemmas on the Moneyist Facebook group, you agree to have them published anonymously on newsrealtime.

By submitting your story to Dow Jones & Co., the publisher of newsrealtime, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

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Wall Street Hates REITs — Why That Might Be Good News for You

Pariah Capital is very interested in the real-estate sector, for the simple reason that nobody else is.

The latest BofA Securities Global Fund Manager Survey shows that the world's top money managers have largely given up on real estate and real-estate investment trusts as an asset. "Real estate allocation is 22% underweight (vs 21% net underweight a month ago)," BofA Securities reports. "Current allocation is 1.6 [standard deviations] below its long-term average," it adds, which is another way of saying fund managers' allocation to REITs is unusually low.

They've been dumping real-estate trusts for several months, and net allocation has dropped toward the levels seen briefly last year and, more remarkably, in the wake of the famous real-estate meltdown of the global financial crisis.

This is happening at the same time that investors are pouring money into gold, other metals and cryptocurrencies as "real" assets that are "safe havens" from the insanity threatening paper currencies — especially here in Weimar America. Isn't real estate a "real" asset?

Pariah Capital is this column's tongue-in-cheek occasional series about the follies of investment-manager groupthink. We examine what would happen if you just did the opposite of the big-money crowd. Generally speaking, you would do pretty well .

Financial adviser John Coumarianos, a former real-estate analyst and now CEO of Mindful Advisory in Northvale, N.J., believes U.S. real-estate investment trusts, or REITs, now look "reasonably priced," especially when compared with the rest of the stock market.

The sector currently trades for about 17.5 times annual funds from operations, compared with an average of about 15.5 times since 2000, he says.

It says something ominous about the overall state of euphoria on Wall Street that even the sector most disliked by investors is still not especially cheap.

The one caveat is that the sector's composition has changed over the years," Coumarianos adds. "You're not simply getting multifamily, office, retail, industrial, healthcare and hotels when you buy the index now. The index still contains those property types, but in lower proportion than previously because of the rise of cell towers and data centers.

REITs enjoy a tax-privileged status because they avoid U.S. corporation tax on income they distribute to their investors, so long as they meet certain legal and financial requirements. If you, the investor, own them in a tax shelter such as an IRA, you also avoid tax.

A study a few years ago argued that real estate worldwide had produced higher overall average returns, dating back to 1960, even than stocks.

According to data from the National Association of Real Estate Investment Trusts, U.S. REITs have earned investors a compound annual return of 9.1% per year since the start of 1972.

But nearly all the returns over time have come from the dividends, not from price appreciation. This means investors should look closely at the dividend yield when they buy REITs. Right now the expected yield on the iShares U.S. Real Estate ETF is 4.2%, according to FactSet data. Meanwhile the bond market is predicting inflation of about 2.4% ahead, so investors might factor in a real yield of 1.8%.

Normally, we could compare that to the real yield on Treasury inflation-protected securities, or TIPS, but due to the turmoil at the Bureau of Labor Statistics at the moment, it's not entirely certain that you will be able to depend on official inflation figures, and therefore TIPS real yields, in the future. Only time will tell.

Coumarianos says academic studies raise questions about whether real-estate trusts are truly the portfolio diversifiers many people on Wall Street claim. (This, incidentally, is also true about various other "magic beans" investing products currently being prepared for the public, such as private equity.)

And while REITs typically pay high dividends, those dividends are subject to fluctuations, just like those from other companies. Rolling annual payouts across the REIT sector dropped by almost half during the depths of the global financial crisis, and again during the pandemic.

Doug Ramsey, chief strategist at the Leuthold Group, includes REITs among the seven assets in his clever "All Asset No Authority" portfolio, which spreads its best equally across U.S. large caps, U.S. small caps, international stocks, 10-year U.S. Treasury bonds, gold and commodity futures, as well as REITs.

"REITs are absolutely a valid asset class," he says, adding that they are out of favor, along with other dividend-paying value stocks. "I think there's an opportunity there." (Ramsey says he likes "dividend aristocrats" — companies that have raised their dividends every year for at least 25 years — even more than REITs, but he isn't budging about keeping REITs in the AANA portfolio.)

Investors can go with a straight low-cost REIT index fund such as IYR or the Vanguard Real Estate ETF. Those who specifically want to orient their investment more toward residential real estate have a couple of ETF options, such as iShares Residential & Multi Sector Real Estate ETF, which charges 0.48% a year, and Armada’s Residential REIT ETF, which charges 0.6%.

Whether there is still a strategic long-term case for REITs is a matter of debate. The tactical case for buying some because they are out of fashion looks stronger.

But as always, there are no free lunches.

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15 stocks of companies set to grow sales twice as fast as the S&P 500 — analysts love them

Growth stocks can be expensive, but if you are trying to be aggressive with a portion of your investment portfolio, you often have to pay a premium for the privilege.

For example, shares of Intuit Inc., the developer of TurboTax and QuickBooks software, have traded at an average forward price-to-earnings ratio of 35.4 over the past five years through Friday, according to FactSet. That is based on prices divided by rolling consensus 12-month earnings-per-share estimates among analysts polled by FactSet. In comparison, the S&P 500 has traded at an average weighted forward P/E ratio of 20.3 over the past five years. And for that five-year period, Intuit’s stock has returned 168.5%, compared with a return of 110.6% for the S&P 500, both with dividends reinvested.

So this is an example of a stock for which paying the growth premium has been worthwhile, at least for this five-year period.

Screening the S&P 500 for revenue growth

To set up a new screen of stocks within the S&P 500 expected to grow their businesses most rapidly, let's begin by looking at expected compound annual growth rates (CAGR) for sales per share from 2025 through 2027. The estimates are weighted by market capitalization, as is the S&P 500 index. The sectors are sorted by expected sales CAGR, with the full index at the bottom:

Sector	Two-year estimated sales CAGR through 2027	Forward P/E	Forward Price / Sales
Information Technology	7.8%	30.0	8.4
Industrials	6.6%	24.7	2.8
Real Estate	6.5%	17.9	6.3
Communication Services	6.5%	19.7	3.9
Healthcare	6.0%	16.2	1.3
Consumer Discretionary	5.8%	29.3	2.7
Financials	5.3%	16.6	3.5
Utilities	5.1%	18.3	2.7
Materials	4.2%	20.3	2.1
Energy	3.5%	15.1	1.4
Consumer Staples	0.8%	22.5	1.4
S&P 500	5.4%	22.3	3.1
Source: FactSet

The information technology sector is expected to increase revenue most rapidly from 2025 through 2027. It also trades at the highest forward P/E and the highest forward price-to-sales ratio.

So we screened the S&P 500 to list highly rated stocks of companies expected to show high revenue CAGR from 2025 through 2027.

• We trimmed the list to 478 companies covered by at least nine analysts polled by FactSet, for which consensus revenue estimates were available through calendar 2027. The estimates were adjusted by FactSet for any companies whose fiscal reporting periods don't match the calendar.
• Then we cut the list to 56 companies with expected revenue CAGR from calendar 2025 through calendar 2027 of at least 10.8% — twice the expected sales-per-share CAGR for the full S&P 500.
• To narrow down to a highly rated group of stocks, we pared the screen to 36 rated "buy" or the equivalent by the analysts.
• For many of these favored stocks, the share prices are close to the consensus price targets, or even exceed them. Most analysts set 12-month price targets. So we made one more cut to 15 stocks for which consensus price targets were at least 10% higher than Friday's closing prices.

Here are the 15 stocks that passed the screen, sorted by expected revenue CAGR:

Company	Ticker	Two-year estimated sales CAGR through 2027	Forward P/E	July 18 price	Cons. Price target	Implied 12-month upside potential
ServiceNow Inc.	19.2%	52.5	$963.40	$1,100.61	14%
Eli Lilly and Co.	18.4%	29.5	$771.71	$988.17	28%
Trade Desk Inc. Class A	17.8%	81.9	$80.21	$89.15	11%
Insulet Corp.	17.3%	57.6	$284.23	$343.17	21%
First Solar Inc.	15.9%	9.3	$175.85	$198.15	13%
DexCom Inc.	15.0%	36.3	$83.89	$100.84	20%
Micron Technology Inc.	14.9%	9.7	$114.39	$151.91	33%
Uber Technologies Inc.	14.4%	27.7	$90.59	$100.34	11%
Monolithic Power Systems Inc.	14.2%	39.1	$725.24	$796.92	10%
Palo Alto Networks Inc.	13.6%	53.5	$195.78	$214.91	10%
Workday Inc. Class A	13.2%	24.7	$233.06	$298.09	28%
Intuit Inc.	13.0%	32.9	$752.63	$825.31	10%
Chipotle Mexican Grill Inc.	12.4%	40.4	$53.93	$60.69	13%
Capital One Financial Corp.	12.3%	12.1	$218.28	$242.65	11%
Mastercard Inc.	12.0%	31.7	$552.66	$630.65	14%
Source: FactSet

Any stock screen is limited to a small amount of information. If you are considering an investment in an individual company, you should do your own research to form your own opinion about how likely that business is to remain competitive over the next decade, at least. One way to begin that process is to click on the tickers for more information.

Read: Tomi Kilgore's detailed guide to the information available on the newsrealtimequote page

Don’t miss: Only six dividend stocks pass a quality screen — with yields up to 6.58%

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