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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Analysts Increase Nvidia Stock Price Forecasts Despite China Risk

Nvidia's stock (NVDA) Slipped both Monday and Tuesday after news that China's State Administration for Market Regulation is investigating its 2020 acquisition of Mellanox Technologies. While that deal was already cleared by Chinese regulators at the time, the decision to revisit it has surprised investors. Antitrust reviews can drag on for months.

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For Nvidia, the concern is that if China were to find issues, it could impose fines or new conditions that make operations harder in a region where Nvidia is already facing limits. The company's H20 chip sales have been zeroed out in recent earnings reports, reflecting just how difficult the market has become. Adding a regulatory probe on top of trade restrictions makes China one of Nvidia's biggest risk factors moving forward.

Analysts Raise Targets but Highlight Risks

Even as China raises new obstacles, Wall Street analysts have been increasing their price targets. KeyBanc's John Vinh Argues that Nvidia's CUDA software ecosystem is a powerful moat, making it difficult for rivals to lure developers away. He maintained an overweight rating with a $230 target. William Blair's Sebastien Naji Also gave Nvidia an outperform rating with a $205 target, saying that China could still improve the company's outlook despite the current uncertainty.

But there are reasons for caution. Susquehanna analyst Christopher Rolland Raised his target to $210 but highlighted concerns regarding Nvidia's H20 chip revenue. Reports indicate that Chinese regulators have asked Nvidia to explain whether its chips could be tracked or shut down remotely, an unusual request that unsettled investors. CEO Jensen Huang denied that such capabilities exist, but lingering questions could affect sales in a critical market.

Nvidia Reports Earnings but No Boost from China

Nvidia's most recent quarter was strong on paper The company posted $1.05 per share in earnings, topping estimates of $1.01. Sales of $46.74 billion also beat expectations, and guidance for the next quarter came in at $54 billion, slightly above forecasts. Nvidia also approved a massive $60 billion buyback, signaling confidence in its own valuation.

The problem is that none of this includes China. Nvidia recorded zero sales from its H20 chips in the region and excluded those sales from its forward guidance. Without clarity on when China revenue might return, the company's headline numbers look impressive, but the full growth story is missing an important piece. For investors, that creates a gap between expectations and reality.

Nvidia Fights Rivals and Develops New Chips

Competition is also intensifying. Broadcom (AVGO) recently landed a $10 billion chip order that positions it as a serious rival in the AI space. Meanwhile, Alibaba (BABA) has developed an in-house AI chip, which is not yet on Nvidia's level but signals that major Chinese companies are preparing alternatives. While Nvidia still holds the crown , the pressure from rivals means it must keep innovating at a rapid pace.

Reports suggest Nvidia is already working on a more powerful chip for China that could bypass restrictions. It has placed orders for hundreds of thousands of H20 chips through Taiwan. Semiconductor (TSM) , building up inventory while preparing for future launches. This shows how much of Nvidia's strategy is now tied to addressing regulatory and political challenges.

Nvidia Tests Key Buy Level

From a technical perspective, Nvidia stock is testing important levels. Shares fell back to their 50-day moving average, a point many traders watch carefully for signs of support or breakdown. The official buy point remains $184.48, which also happens to be the stock's all-time high. Until the stock can convincingly clear that level again, investors may be reluctant to chase the rally.

The stock's ratings remain strong, with a top-level EPS rating of 99 and a Composite Rating of 98. But fund ownership has slipped, with only 41% of shares currently held by institutions. This suggests big money is not aggressively adding to positions at the moment. For individual investors, the question becomes whether this dip is a buying opportunity or a warning to wait on the sidelines.

Overall, Nvidia remains one of the strongest companies in the AI race, but the road ahead is no longer as smooth as it once was. The China investigation, uncertainty regarding H20 chip sales, and increasing competition all cloud the near-term outlook. Analysts remain optimistic overall, but their targets come with caveats.

If Nvidia can stabilize around current support and push above its buy point, it may well continue its record-breaking run. But if China's pressure intensifies or rivals gain more ground, the stock could stay stuck in a holding pattern.

Is Nvidia a Good Stock to Buy?

Wall Street analysts remain firmly bullish on Nvidia stock. Out of 38 analysts who have given their opinions over the past three months, 35 recommend a Buy, two suggest a Hold, and only one calls it a Sell. This gives the chipmaker a "Strong Buy" consensus rating.

The average 12-month price target for Nvidia is $211.26, representing nearly 19% upside from its latest price.

See more NVDA analyst ratings

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Top news to drive the VOO and SCHD ETFs this week

American stocks remained stable and reached their all-time high last week, with all equities adding over $14 billion in value this cycle. The Vanguard S&P 500 ETF (VOO) rose to a record high of $604, while the Schwab US Dividend Equity ETF (SCHD) jumped to $27.

This article highlights some of the top catalysts driving the VOO, SCHD, and other ETFs this week.

US retail sales data

The first main catalyst for the VOO and SCHD ETFs will be the upcoming retail sales numbers on Tuesday. These are useful numbers, which provide hints on the health of the American economy and consumers.

Economists expect the data to show that the headline retail sales rose by 3.2% YoY after rising by 3.9% in the previous month. A slowdown in retail sales is likely to be attributed to Donald Trump's tariffs, which have led to higher inflation in recent months.

The other important economic data to watch will be the US import and export prices, which will provide information about how the tariffs are affecting the price of goods at the ports.

Read more: US holiday sales expected to rise a modest 2.9–3.4%, Deloitte says

Federal Reserve interest rate decision

The most important catalyst for the VOO and SCHD ETFs this week will be Wednesday's Federal Reserve interest rate decision.

This decision will be important because it will be the first one that the bank cuts interest rates this year.

Odds of a rate cut in this meeting have jumped in the past few weeks after the US published weak jobs numbers. A report showed that the economy added just 22,000 jobs in August, while the unemployment rate rose to 4.3%.

Another report released last week showed that inflation was largely in line with what analysts were expecting. The headline Consumer Price Index (CPI) rose to 2.9%, while the core figure rose to 3.2%.

In theory, a Fed cut would be highly bullish for the stock market. However, there is a risk that the rate cut has already been priced in by investors. This, in turn, could be a 'sell-the-news' event as JPMorgan analysts warned. RBC Capital Markets analysts have warned of potential buyer fatigue.

Corporate earnings

The earnings season has ended, and according to FactSet, the aggregate earnings growth in the second quarter was about 11%, higher than what analysts were expecting.

Oracle, a top technology company, was the standout firm during the earnings season as it showed that its RPO jumped by 360% in the last quarter to $455 billion.

There will be a few important earnings this week. FedEx, Lennar, Darden Restaurants, and FactSet will release their latest results on Thursday.

Lennar is closely watched because it is one of the largest homebuilders in the United States. And with mortgage rates falling, investors will want to see whether this translates into higher sales.

FedEx results provide information about the health of the American economy as it is one of the top players in the delivery industry. General Mills and Cracker Barrel will release their results on Wednesday this week.

The post Top news to drive the VOO and SCHD ETFs this week appeared first on newsrealtime

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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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