Nvidia (NVDA) has no shortage of high-profile believers, but when a billionaire with a history of concentrated, conviction-driven bets doubles down, the market tends to pay attention. Leo KoGuan recently revealed that he now owns 2 million shares of Nvidia, building his position in the AI chip giant at a time when volatility stemming from the Iran war has rattled investor confidence. Even more notably, KoGuan said he was buying in part to help “calm the nervous market,” signaling not just conviction in Nvidia’s fundamentals but in the broader AI trade.

So should you follow his lead? Is this a moment to “back up the truck,” or a time for discipline? In this article, we’ll break down what KoGuan’s purchase really signals, assess Nvidia’s fundamentals, and determine whether retail investors should be leaning in — or exercising patience.

About Nvidia Stock

Nvidia is a premier technology firm known for its expertise in graphics processing units (GPUs) and artificial intelligence (AI) solutions. The company is renowned for its pioneering contributions to gaming, data centers, and AI-driven applications. The company's technological solutions are developed around a platform strategy that combines hardware, systems, software, algorithms, and services to provide distinctive value. The chipmaker curently has a market cap of $4.49 trillion, making it the world’s most valuable company.

Shares of the AI darling are largely flat on a year-to-date (YTD) basis. The latest leg down followed the company’s blockbuster earnings report, which was met with a lukewarm response from investors. The stock then staged a partial rebound as dip-buyers stepped in.

Nvidia Gets a Vote of Confidence From Tesla Whale

Billionaire investor Leo KoGuan said in a post on X last Friday that he has doubled his stake in Nvidia to 2 million shares. KoGuan is the co-founder of software company SHI International and one of Tesla’s (TSLA) largest individual shareholders, which accounts for the bulk of his wealth. The move came amid heightened volatility tied to the Middle East conflict, which triggered a broad selloff across global markets. KoGuan did not offer additional details about the purchase, simply stating, “Hopefully, I can contribute a little to calm the nervous market. Good luck all.”

A few days earlier — last Tuesday, to be precise — KoGuan purchased his first 1 million Nvidia shares. At the time, the 71-year-old billionaire wrote on X, “I am convinced AI is NOT a bubble, it is only the beginning.” Based on recent closing prices, KoGuan is estimated to have spent approximately $350 million to build his Nvidia stake.

According to the Bloomberg Billionaires Index, KoGuan’s net worth stands at $13.4 billion, making his Nvidia purchase relatively modest compared to his overall fortune. KoGuan has said he remains “still mostly in Tesla” and Treasury bills. However, when someone like the billionaire, whose wealth has long been concentrated in a single stock, begins building a position in Nvidia, I see it as a strong vote of confidence. “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 said.

Nvidia’s Blowout Earnings Receive a Tepid Market Reaction

Indeed, Nvidia is the foundational, infrastructure enabler of the modern AI ecosystem. The company provides the essential hardware (GPUs), software (CUDA), and networking technologies that act as the backbone for AI development, training, and deployment. And demand for its products shows no signs of slowing.

In late February, Nvidia reported blowout Q4 results and issued Q1 revenue guidance that smashed analysts’ estimates. The chipmaker reported record quarterly revenue of $68.1 billion, representing a 20% sequential increase and a 73% year-over-year (YoY) gain. The figure blew past expectations and marked the company’s strongest YoY growth rate in four quarters. Its adjusted earnings per share (EPS) came in at $1.62, topping expectations by $0.08.

The heart of Nvidia’s business, the data center segment, which encompasses the chips and networking equipment it supplies to AI and cloud-computing customers, also delivered record numbers. The segment’s revenue stood at $62.3 billion, up 22% from the previous quarter and 75% YoY. The growth was driven by major platform shifts toward accelerated computing and AI. 

Nvidia also issued upbeat guidance for the current quarter. The company said it expects revenue of $78 billion, plus or minus 2%.

Still, the impressive beat and strong outlook failed to impress investors, sending NVDA stock down more than 5% in its sharpest drop since April. The stock dropped another 4% in the subsequent trading session. Some analysts noted that expectations for AI-linked companies, particularly Nvidia, had become extremely high, while others questioned whether booming AI spending could be sustained. The drop also came amid lackluster sentiment toward the AI trade.

All Eyes on Nvidia’s GTC Developer Event

With the blockbuster earnings report failing to ignite a rally in NVDA stock, investors are now turning their attention to the next potential catalyst — Nvidia’s annual GPU Technology Conference (GTC). This year’s GTC kicks off next week, and the company is expected to unveil multiple hardware innovations. You can read more about the event in my previous article on NVDA.

CEO Jensen Huang has already hinted at the unveiling of products the “world has never seen before.” The Wall Street Journal reported that Nvidia plans to introduce a new processor specifically designed to help OpenAI and other clients develop faster, more efficient tools. The company is developing a new system for “inference” computing, which enables AI models to generate responses to queries, the report said.

What Do Analysts Expect For NVDA Stock?

Nvidia’s stock has a top-tier consensus rating of “Strong Buy.” Of the 49 analysts covering the stock, 44 rate it a “Strong Buy,” three assign a “Moderate Buy” rating, one advises holding, and one gives it a “Strong Sell” rating. The mean price target for NVDA stock stands at $265.01, indicating a potential upside of 42.5% from current levels.

Putting it all together, I reiterate my “Strong Buy” rating on NVDA and believe that following KoGuan’s lead makes sense. Nvidia serves as the foundational infrastructure backbone of the modern AI ecosystem, and the recent revenue update from Taiwan Semiconductor (TSM), along with quarterly results from Oracle (ORCL), confirm that AI demand remains very strong. 

There is clearly a disconnect between the company’s fundamentals and its stock price, and I believe the upcoming GTC event could help begin closing that gap. I’m encouraged by how the stock continues to hold the $170 to $180 support area (which was already tested a few times), and I view it as an attractive zone to add, provided there is confirmation of bullish momentum.

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