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

Dow Jones03-05 20:44

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.

"Tesla is embodied physical AI; NVDA is an enabler foundational layer of AI. AI is information that thinks, reasons, acts, walks, works and lives, " Koguan wrote.

While Koguan 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 down 0.3% in premarket trading Thursday 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.

Meanwhile, Nvidia has halted production of its H200 chips for the Chinese market and reallocated manufacturing capacity toward its next-generation Vera Rubin processors amid continued uncertainty over whether Beijing and Washington will allow AI processor exports to China, the Financial Times reported Thursday, citing unnamed sources.

Nvidia didn't immediately respond to a request for comment on the report.

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Comments

  • neo26000
    03-05 21:07
    neo26000
    Every day the news is the same blockbuster headline: “So-and-so buys 1 million shares!” 🚨 Five minutes later: “So-and-so sells 1 million shares!” 🚨 Wow. Groundbreaking journalism. Truly Nobel-Prize level analysis. Let me say this for the one-million-and-first time: the stock market is a zero-sum trade at the transaction level. If someone buys 1 million shares, guess what miracle must occur? A person and or a group of people just sold 1 million shares. 🤯 So the real question isn’t “Who bought or sold?” The real question is which side is the bigger goondu. But the financial news will write it like that: “Genius billionaire buys 1M shares!” “Unknown peasants dump 1M shares!” Reality check: It might just as easily be: “Retail panic sells.” “Some hedge fund intern accidentally presses BUY.” Bot
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