Billionaire Leo KoGuan Makes Massive Nvidia (NVDA) Stock Investment in AI Revolution

TLDR

Table of Contents

Tesla mega-investor Leo KoGuan acquired 1 million shares of NVDA and signals plans for additional purchases, stating AI is “not a bubble”
While maintaining significant Tesla holdings, KoGuan reveals portfolio diversification strategy including NVDA and Treasury securities
UBS reaffirms Buy rating with $245 price objective following impressive Q4 earnings performance
Q4 fiscal 2026 revenue hit $68 billion, surpassing Wall Street expectations by approximately $2 billion
UBS analysts forecast potential for $100 billion quarterly revenue as customer orders now stretch into 2027

This week marked a significant strategic shift for Leo KoGuan, the billionaire investor renowned as one of Tesla’s biggest individual stakeholders, as he made a substantial entry into Nvidia.

NVIDIA Corporation, NVDA

In a post on X, KoGuan revealed his acquisition of 1 million NVDA shares with intentions to expand his position further. “I am convinced AI is NOT a bubble, it is only the beginning,” he declared.

This investment represents part of a broader portfolio rebalancing strategy that’s been unfolding over recent months. KoGuan indicated in November that he had moved away from being “all-in-Tesla,” redirecting capital toward 3-month Treasury bills.

While maintaining substantial Tesla exposure, he declined to disclose the precise extent of his reductions. “I do think Tesla’s energy, cybercap and Teslabot are NOT fully priced in,” he commented, characterizing Tesla as “the leading embodied AI on earth.”

Nevertheless, this conviction hasn’t prevented him from establishing a meaningful stake in Nvidia.

Impressive Results Meet Tepid Market Response

Nvidia’s fiscal 2026 Q4 performance delivered compelling metrics. The company generated $68 billion in revenue, exceeding consensus analyst projections by roughly $2 billion. Adjusted earnings per share reached $1.62, topping expectations by $0.08.

Yet the market’s response remained subdued. This gap between operational excellence and stock performance hasn’t gone unnoticed by Wall Street observers.

Jefferies highlighted that valuation levels for companies like Nvidia and Broadcom have grown “disconnected from fundamentals.” According to analyst Blayne Curtis, both represent “the most certain AI winners in our space trading at basement bargain multiples.”

Path to $100 Billion Quarterly Revenue Identified by UBS

On February 26, UBS reiterated its Buy recommendation with a $245 price objective, pointing to what it characterized as the most bullish demand outlook the company has ever provided.

The investment bank observed that Nvidia’s committed inventory purchase obligations nearly doubled from the previous quarter — following a more than 60% increase in the period before that.

According to UBS analysis, this inventory accumulation provides sufficient capacity to drive quarterly revenue toward the $100 billion threshold in upcoming periods.

The firm also upgraded its earnings projections, raising estimated EPS for calendar year 2027 to approximately $12.70 and 2028 to $14.80.

The most significant indicator: Nvidia’s customer order backlog now extends well into 2027, demonstrating sustained demand momentum shows no signs of weakening.

✨ Limited Time Offer