Billionaire hedge fund managers like David Tepper are worth tracking for investors. Tepper’s fund, Appaloosa Management, loaded up on Nvidia stock in 2025, owning 300,000 shares at the end of Q1 and 1.9 million at the end of Q3. This move suggests potential for significant growth in 2026.

Nvidia, a leader in GPUs, has seen high demand due to AI computing needs. CEO Jensen Huang mentioned that Nvidia was “sold out” of cloud GPUs in Q3 2026. Despite concerns of an AI bubble burst, demand remains strong as hyperscalers invest heavily in AI computing capacity.

Nvidia anticipates significant growth by ramping up production to meet increasing demand for AI computing power. The company projects global data center capital expenditures to rise to $3-4 trillion annually by 2030, indicating a strong outlook for the company and its stock.

Tepper’s bullish stance on Nvidia reflects confidence in the company’s future growth potential. While the stock is currently trading 10% below its all-time high, its forward PE ratio is reasonable at 24x next year’s earnings, making it an attractive investment opportunity.

Investors are advised to consider Nvidia’s strong position in the data center market and the current discounted stock price as a buying opportunity. With a promising outlook for growth and demand for AI computing power, Nvidia remains an excellent choice for long-term investors seeking substantial returns.

Read more at Yahoo Finance: Billionaire David Tepper Loaded Up on Nvidia Shares in 2025. Should You Follow Him?