Key Takeaways
- Tesla billionaire Leo KoGuan acquired 1 million shares of NVDA and intends to purchase additional shares, declaring AI is “not a bubble”
- While maintaining significant Tesla holdings, KoGuan has begun portfolio diversification with NVDA positions and Treasury bills
- Following Q4 earnings that exceeded expectations, UBS reaffirmed its Buy recommendation with a $245 target price
- Nvidia delivered Q4 fiscal 2026 revenue of $68 billion, surpassing Wall Street expectations by approximately $2 billion
- According to UBS analysts, NVDA’s quarterly revenue trajectory could hit $100 billion, with customer orders booked through 2027
Leo KoGuan, the billionaire investor famous for his substantial Tesla stake, executed a significant strategic move this week by establishing a major position in Nvidia.
In a post on X, KoGuan disclosed his purchase of 1 million NVDA shares while indicating his intention to expand the position further. “I am convinced AI is NOT a bubble, it is only the beginning,” he stated.
His portfolio rebalancing has been underway for several months. In November, KoGuan revealed he had moved away from being “all-in-Tesla” and had begun allocating capital to 3-month Treasury bills.
Despite maintaining a substantial Tesla stake, he declined to specify the exact reduction amount. “I do think Tesla’s energy, cybercap and Teslabot are NOT fully priced in,” he noted, emphasizing that Tesla represents “the leading embodied AI on earth.”
Nevertheless, this hasn’t prevented him from exploring opportunities in Nvidia.
Impressive Results, Subdued Market Response
Nvidia’s fiscal Q4 2026 performance was undeniably robust. The company posted $68 billion in revenue, exceeding consensus analyst projections by roughly $2 billion. Adjusted earnings per share reached $1.62, topping estimates by $0.08.
Yet the stock’s price response was relatively muted. This gap between financial performance and market reaction has drawn significant analyst attention.
Jefferies highlighted that valuations for companies like Nvidia and Broadcom have become “disconnected from fundamentals.” Analyst Blayne Curtis characterized both stocks as “the most certain AI winners in our space trading at basement bargain multiples.”
UBS Projects Path to $100 Billion Quarterly Revenue
On February 26, UBS reaffirmed its Buy rating with a $245 price target, referencing the most bullish demand outlook the firm had observed from Nvidia.
The investment bank highlighted that Nvidia’s purchase commitments for inventory nearly doubled from the previous quarter — following a more than 60% increase the quarter prior.
According to UBS, this inventory accumulation provides Nvidia with sufficient capacity to drive quarterly revenue toward the $100 billion threshold in upcoming periods.
The firm also increased its earnings projections, elevating anticipated EPS for calendar year 2027 to approximately $12.70 and 2028 to $14.80.
The most significant indicator: Nvidia’s order backlog now extends well into 2027, demonstrating sustained customer demand with no signs of weakening.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
