TLDR
- Ken Griffin’s Citadel bought 1.73 million Nvidia shares in Q3 2025, increasing its stake by 22% to 9.82 million shares worth $1.82 billion
- Citadel simultaneously sold 10.02 million Intel shares, cutting its position in the chipmaker
- HSBC analyst Frank Lee upgraded Nvidia to Buy with a $320 price target, citing expanding AI GPU market opportunities
- Wall Street maintains a Strong Buy rating on Nvidia with 37 of 39 analysts recommending the stock
- Griffin warns the market rally may be artificially driven by policies meant for a contracting economy, creating a “sugar high” effect
Citadel CEO Ken Griffin made a clear choice between two chip giants last quarter. His hedge fund bought heavily into Nvidia while selling off millions of Intel shares.
The moves came during Q3 2025 when Citadel purchased approximately 1.73 million Nvidia shares. This boosted the fund’s position by 22% to roughly 9.82 million shares valued at $1.82 billion.
At the same time, Citadel dumped about 10.02 million Intel shares. The sale marked a retreat from Intel as questions persist about the company’s turnaround efforts.
Griffin’s bet on Nvidia comes despite his warnings about the broader market. The billionaire investor, worth about $49.8 billion, cautions that current market conditions resemble a “sugar high.”
He points to fiscal and monetary policies that seem designed for a recession rather than an expanding economy. Griffin highlighted gold’s 50% climb this year as evidence investors are quietly hedging against risks.
But his concerns about the economy haven’t stopped him from backing Nvidia. The company dominates the AI chip market through its GPUs and complete software ecosystem.
Nvidia started as a gaming specialist but pivoted its GPU technology to handle AI workloads. The shift positioned the company at the center of the AI revolution.
Analyst Upgrades Point to Growing Confidence
HSBC analyst Frank Lee recently switched his stance on Nvidia. He upgraded the stock to Buy with a $320 price target, among the highest on Wall Street.
Lee cited an expanding market for AI GPUs beyond traditional data center customers. He sees new opportunities in China, enterprise clients, and sovereign AI projects.
“We are more bullish given we now see further potential upside to FY27e earnings that can surprise the market,” Lee wrote. He noted Nvidia’s bullish wafer allocation plans confirm growing demand.
Lee had previously worried about limited pricing power from Nvidia’s product roadmap. Those concerns have faded as the addressable market grows larger.
The broader analyst community shares this optimism. Out of 39 recent ratings, 37 recommend buying the stock. Only one analyst rates it a Hold and one a Sell.
Data Center Demand Drives Growth
Wall Street’s average price target sits at $242, implying roughly 30% upside over the next year. Some analysts see even more room to run.
Nvidia’s chips remain the top choice for training large AI models. The company’s CUDA software platform creates switching costs that keep customers locked in.
Data center operators continue placing large orders for Nvidia’s GPUs. Cloud computing giants represent the bulk of demand, though enterprise adoption is accelerating.
Some investors worry about high valuations and whether cloud spending can maintain its pace. These concerns haven’t dampened Griffin’s enthusiasm or Wall Street’s ratings.
Citadel’s increased stake signals confidence that Nvidia can continue growing despite a potentially shaky economic backdrop. The fund now ranks among the largest institutional holders of Nvidia stock.
Griffin’s decision to trim Intel while adding Nvidia reflects the diverging fortunes of the two chipmakers. Intel struggles to compete in AI while Nvidia extends its lead.
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