Key Takeaways
- Leo KoGuan, a prominent billionaire investor, purchased 1 million shares of NVDA and intends to acquire additional positions, stating AI represents “not a bubble”
- While maintaining significant Tesla holdings, KoGuan has shifted strategy to include NVDA investments and Treasury bills
- UBS analysts reaffirmed their Buy recommendation on NVDA with a price target of $245 following stronger-than-expected Q4 results
- NVDA’s fourth-quarter fiscal 2026 revenue hit $68 billion, surpassing analyst projections by approximately $2 billion
- According to UBS analysis, NVDA’s quarterly revenue trajectory could hit $100 billion, supported by customer orders stretching into 2027
Leo KoGuan, widely recognized as one of Tesla’s most substantial individual investors, executed a significant investment strategy shift this week by establishing a major position in Nvidia.
Through a post on X, KoGuan revealed his acquisition of 1 million NVDA shares while signaling his intention to expand this position further. “I am convinced AI is NOT a bubble, it is only the beginning,” he declared.
This represents part of a broader portfolio rebalancing KoGuan has undertaken in recent months. In November, the billionaire investor announced he had moved away from his previous “all-in-Tesla” approach, opting to allocate capital into 3-month Treasury bills.
Despite maintaining substantial Tesla exposure, KoGuan declined to specify the exact reduction size. “I do think Tesla’s energy, cybercap and Teslabot are NOT fully priced in,” he commented, characterizing Tesla as “the leading embodied AI on earth.”
Nevertheless, this conviction didn’t prevent him from pursuing opportunities in Nvidia.
Impressive Financial Results Meet Tepid Market Response
Nvidia’s fourth-quarter fiscal 2026 performance delivered compelling numbers. The company posted $68 billion in revenue, exceeding consensus analyst expectations by roughly $2 billion. Adjusted earnings per share reached $1.62, topping forecasts by $0.08.
However, the market’s response proved surprisingly subdued. This gap between operational performance and stock movement has captured analyst attention across Wall Street.
Jefferies analysts highlighted that valuations for companies including Nvidia and Broadcom have grown “disconnected from fundamentals.” Analyst Blayne Curtis characterized both as “the most certain AI winners in our space trading at basement bargain multiples.”
Wall Street Projects Path to $100 Billion Revenue Quarters
On February 26, UBS reiterated its Buy stance and $245 price objective, referencing what analysts characterized as the most bullish demand outlook they had observed from Nvidia management.
The investment bank highlighted that Nvidia’s contractual purchase obligations for inventory components nearly doubled from the previous quarter — following growth exceeding 60% in the period before that.
According to UBS projections, this inventory accumulation strategy provides Nvidia sufficient capacity to drive quarterly revenue approaching $100 billion in upcoming periods.
The firm also increased its profit forecasts, elevating projected EPS for calendar year 2027 to approximately $12.70 and 2028 to $14.80.
Perhaps most significantly: Nvidia’s customer order backlog now extends through 2027, indicating sustained demand momentum shows no signs of weakening.
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