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Billionaire investors are eager to buy growth stocks that look poised to extend their gains. Few stocks fit the description quite like this NVIDIA (NASDAQ: NVDA)It recently caught the attention of hedge fund billionaire David Tepper, who bought more shares of Appaloosa Management. The hedge fund bought an additional 150,000 shares and now owns 1.9 million Nvidia shares. Billionaire Daniel S. Loeb also purchased an additional 50,000 shares of Nvidia stock for his Third Point fund.
Nvidia is the most established AI stock. Its years of gains have made it the most valuable public company, but even so, billionaire investors are still hoping for more. These are all reasons why Nvidia continues to outperform.
Investors who have been following semiconductor stocks for a while have probably heard many times about the surge in demand for artificial intelligence chips, but the story isn’t over yet. Consulting giant McKinsey believes that the semiconductor market is underestimated and may reach US$1.6 trillion by 2030. Tech giants continue to increase their budgets, suggesting that AI chipmakers like Nvidia can continue to rebound.
In the third quarter of fiscal 2026, which ended on October 26, 2025, Nvidia achieved revenue of $57 billion, which was actually up 62% year-over-year. It’s extremely difficult to make $57 billion in a single quarter, but an overlooked part of these results is how difficult it is for a company as big as Nvidia to still maintain 62% growth.
Nvidia’s guidance shows that its fourth-quarter revenue will reach $65 billion, plus or minus 2%. The midpoint would imply a sequential increase of 14%.
Nvidia regularly releases new AI chips that can handle more workloads, and that big chip is set to arrive in 2026. Vera Rubin is a platform that combines Vera CPU and Rubin GPU. It’s much more efficient than the Nvidia Blackwell platform, which is currently the company’s most successful product.
Technology leaders rave about the Vera Rubin platform. Elon Musk has called it “the rocket engine of artificial intelligence,” while tech CEOs including Mark Zuckerberg, Satya Nadella and Sam Altman have publicly said Vera Rubin is a key part of their AI ambitions.
It’s easy to see Nvidia continuing to outperform the market and post double-digit sequential growth driven by this demand. It may also continue to accelerate from current levels. Companies using Blackwell will also actively purchase Rubin platform hardware.
The race for artificial intelligence is extremely competitive, and companies are desperate to accumulate as many resources as possible. Humanoid robots, self-driving cars, and agent AI are some of the high-potential AI products that could reshape the industry and spur demand for Nvidia chips. . The potential of AI to disrupt every industry makes it too powerful to err on the side of caution or wait for AI chips, energy and other inputs to become cheaper.
Before buying Nvidia stock, consider the following factors:
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Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has a position and recommends Nvidia. The Motley Fool has a disclosure policy.
Billionaires are piling into this artificial intelligence (AI) stock. that’s why. Originally posted by The Motley Fool