Nvidia Gets a Vote of Confidence. Why This Investor Bought More Stock. -- Barrons.com

Dow Jones16:54

By Adam Clark

Nvidia might not be the stock market darling any more but it still has big fans. Billionaire IT entrepreneur Leo Koguan has bought one million shares in the chip maker and said he plans to invest more.

"I bought 1 million shares of NVDA last night; plan to buy more. I am convinced AI is NOT a bubble, it is only the beginning," Koguan wrote on social-media platform X.

Koguan is co-founder of software firm SHI International and one of Tesla's largest individual shareholders, which is the primary source of his wealth. While he didn't disclose details of the price of the purchase, the timing suggests he spent around $180 million on Nvidia shares, with the stock in the middle of a monthslong period of range-bound trading.

Nvidia shares were up 0.3% in after-hours trading on Wednesday as investors digested earnings from its chip making peer Broadcom. The results echoed Nvidia's forecast of continued growth in artifcial-intelligence chip demand but also suggested a fiercer competitive environment ahead.

The growth of Google's Tensor Processing Units (TPUs) -- which Broadcom helped design -- has brought the biggest competitive challenge yet to Nvidia in the AI chip sector.

Broadcom said there was strong demand this year for the seventh-generation Ironwood TPU and it expects that to increase in 2027 with future TPU generations. It also said that customers were increasingly using its custom AI chips -- which it calls XPUs -- for training AI models, an area where Nvidia's graphics-processing units, or GPUs, have dominated.

"Many of our XPUs are used both in training as well as inference...[Broadcom's customers] will start to develop two chips each year simultaneously: one for training, one for inference, to be specialized," Broadcom CEO Hock Tan told analysts on an earnings call.

Write to Adam Clark at adam.clark@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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March 05, 2026 03:54 ET (08:54 GMT)

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