Billionaire David Tepper sells Nvidia, buys Vistra, showing confidence in future prospects.

From Nasdaq: 2025-01-23 04:00:00

In the third quarter of 2023, billionaire David Tepper sold 65,000 shares of Nvidia and bought 1.2 million shares of Vistra. Nvidia dominates the AI accelerator market with up to 95% market share, while Vistra is the largest power producer in the U.S., serving 5 million retail customers. Appaloosa Management’s trades reflect confidence in these companies’ future prospects.

Nvidia is well-positioned in the accelerated computing market with its GPUs and CUDA programming tools. The company is targeting data centers transitioning to accelerated computing and AI workloads. Analysts forecast Nvidia’s adjusted earnings to grow at 52% annually through fiscal 2026, making the current valuation relatively cheap. Investors should consider buying Nvidia shares.

Vistra operates in wholesale and retail electricity markets, with a focus on increasing demand for electricity driven by industrial reshoring and AI data centers. The company has a large presence in key markets like PJM and ERCOT, where demand is projected to double by 2030. Vistra has created value through stock buybacks and plans to repurchase shares, but its current valuation looks relatively expensive.

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Read more at Nasdaq: Billionaire David Tepper Sells Nvidia Stock and Buys an AI Stock Up 700% Since Early 2023