Billionaire investors eagerly load up on winning growth stocks that look ready to extend their rallies. Few stocks fit the description quite like Nvidia (NVDA 0.72%), which recently got the attention of hedge fund billionaire David Tepper, who bought more shares for Appaloosa Management. The hedge fund bought an additional 150,000 shares and now owns 1.9 million Nvidia shares. Billionaire Daniel S. Loeb also bought an extra 50,000 Nvidia shares for his Third Point fund.
Nvidia is the most well-established AI stock. Its multiyear rally has turned it into the most valuable publicly traded company, but even with that distinction, billionaire investors still want more of it. These are the reasons why Nvidia continues to outperform the broader market.
Demand for AI accelerator chips remains insatiable
Image source: Getty Images.
Investors who have followed semiconductor stocks for a while have likely heard about soaring AI chip demand plenty of times, but the story isn't close to over. Consulting giant McKinsey believes the size of the semiconductor market is underestimated and could reach $1.6 trillion by 2030. Tech giants continue to pull deeper into their budgets, suggesting that AI chipmakers like Nvidia can continue to rally.
NASDAQ: NVDA
Key Data Points
Nvidia earned $57 billion in the third quarter of fiscal year 2026, which ended Oct. 26, 2025, and that's actually up by 62% year over year. It's extremely hard to earn $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 register a 62% growth rate.
Nvidia's guidance suggests that it will earn $65 billion in Q4, plus or minus 2%. The midpoint implies 14% sequential growth.
Nvidia's Vera Rubin platform will come out in the second half of 2026
Nvidia regularly releases new AI chips that can handle more workloads, and that big chip will come out in 2026. Vera Rubin is a platform that combines Vera CPUs and Rubin GPUs. It's far more efficient than the Nvidia Blackwell platform, which is currently the company's most successful product.
Tech leaders have been gushing over the Vera Rubin platform. Elon Musk called it "a rocket engine for AI," while Mark Zuckerberg, Satya Nadella, and Sam Altman were some of the tech CEOs who openly said Vera Rubin is a key part of their AI ambitions.
It's easy to see Nvidia continue to outperform and deliver double-digit sequential growth with that type of demand. It may continue to accelerate from current levels as well. Companies that loaded up on Blackwell will aggressively buy Rubin platform hardware as well.
The AI race is hypercompetitive, with companies throwing caution to the wind as they accumulate as many resources as possible. Humanoid robots, self-driving cars, and agentic AI are some of the high-potential, AI-powered products that can reshape industries and boost demand for Nvidia's chips. . The potential for AI to disrupt every industry makes it too potent to play it safe or wait for AI chips, energy, and other inputs to get cheaper.
