Billionaire Hedge Funds Load Up on Nvidia—But Not Everyone Is Convinced

Billionaire Money Managers Are Once Again Piling Into Nvidia Stock

When the world’s most successful hedge fund billionaires start buying a stock, markets take notice. In the quarter ended June 2025, five prominent billionaire money managers significantly increased their positions in Nvidia, the semiconductor giant powering the artificial intelligence (AI) revolution. Their collective moves reflect a renewed conviction that Nvidia’s competitive advantage in AI graphics processing units (GPUs) remains unrivaled—and that its growth story is far from over.

At the same time, not every billionaire investor is convinced. While most are piling in, a few high-profile outliers are cutting exposure or hedging against downside risk.

Who’s Buying Nvidia?

During Q2 2025, five elite hedge funds led by billionaire investors made large-scale purchases of Nvidia shares:

• Philippe Laffont, Coatue Management – 2,942,694 shares purchased. Notably, this ends an eight-quarter streak of selling Nvidia.
• Karthik Sarma, SRS Investment Management – 2,653,210 shares purchased.
• David Tepper, Appaloosa Management – 1,450,000 shares purchased, nearly six times his previous stake after slashing exposure in 2023.
• Dan Loeb, Third Point – 1,350,000 shares purchased.
• Chase Coleman, Tiger Global Management – 742,202 shares purchased.

This is not simply routine portfolio rebalancing. Many of these funds had been reducing Nvidia exposure after the stock’s meteoric rise in 2023. Their return signals that Nvidia’s fundamentals, innovation pipeline, and strategic position are too strong to ignore.

Nvidia’s Enduring Moat

Three key factors explain why billionaires are willing to re-enter Nvidia at elevated valuations:

1. Hardware Leadership
   Nvidia’s Hopper (H100) and Blackwell (B100) GPUs remain the gold standard for AI-accelerated computing. Competitors have yet to produce chips matching Nvidia’s performance in large-scale AI data centers. This technological lead allows Nvidia to command premium pricing and long-term supply contracts with hyperscale cloud providers.
2. Regulatory Tailwinds
   Export restrictions that limited Nvidia’s AI chip sales to China have recently been lifted. The company is now free to ship its H20 GPU to the world’s second-largest economy. This reopens a vast market and eases investor concerns about geopolitical headwinds dampening revenue growth.
3. Accelerated Innovation Cycle
   CEO Jensen Huang is compressing the development timeline, targeting a new AI chip launch every year. After Blackwell Ultra in H2 2025, Nvidia plans to debut Vera Rubin in 2026 and Vera Rubin Ultra in 2027. This cadence helps maintain Nvidia’s compute advantage and pricing power.

For billionaire fund managers, this combination of technical dominance, regulatory relief, and rapid innovation makes Nvidia one of the most compelling AI investments globally.

Why Tepper’s Return Matters

Among the notable buyers, David Tepper’s move is especially striking. Tepper reduced Nvidia exposure by 97% as of September 2023. His decision to increase his stake six-fold in Q2 2025 suggests a significant shift in conviction.

For CEOs and investors, Tepper’s U-turn illustrates how risk-reward dynamics can evolve quickly in AI-driven markets. What looked like peak pricing in 2023 may, in retrospect, be only the beginning of a multi-year growth cycle as AI adoption spreads across industries.

The Outliers: Who’s Selling Nvidia?

Despite the buying frenzy, two billionaire asset managers took the opposite view in Q2:

• Ole Andreas Halvorsen, Viking Global Investors – Sold 2,861,172 shares, reducing Nvidia exposure by 44%.
• Paul Singer, Elliott Investment Management – Bought 2.58 million put contracts, betting on a decline in Nvidia’s stock price.

Their skepticism highlights a key reality: valuation risk. Nvidia is already the world’s largest publicly traded company by market capitalization. Any slowdown in AI chip demand, margin pressure from competitors, or geopolitical shocks could trigger volatility.

Risks and Challenges

Even as billionaires pour in, Nvidia faces real challenges:

• Valuation Pressure: With a forward P/E multiple well above historical norms, expectations are sky-high.
• Rising Competition: AMD, Intel, and new entrants are investing heavily in AI accelerators. While not yet equal to Nvidia, competition will intensify.
• Supply Constraints: Demand for GPUs exceeds supply, limiting Nvidia’s ability to fully monetize its advantage.
• Geopolitical Fragility: U.S.-China tensions could reemerge, disrupting access to critical markets.

For boards and C-Suite leaders, these risks emphasize the importance of scenario planning even when investing in market darlings.

Outlook for Nvidia and Investors

Nvidia is not just another semiconductor company—it is the cornerstone of the AI ecosystem. Billionaire hedge fund managers are betting that AI adoption is still in its early innings and that Nvidia will remain the dominant hardware supplier powering that transformation.

But the divergence of billionaire views underscores that volatility will accompany growth. While some see upside from innovation and new markets, others remain cautious about valuation peaks and macro risks.

Executive Takeaway

For CEOs, CFOs, and investors, Nvidia’s case illustrates several critical lessons:

• Consensus Isn’t Universal: Even billionaires disagree on timing and exposure, reminding leaders to define risk tolerance clearly.
• Innovation Cycles Drive Value: Nvidia’s aggressive chip rollout schedule demonstrates how product leadership sustains market dominance.
• Geopolitics Shapes Opportunity: Regulatory shifts can open—or close—entire markets overnight.
• Diversification Matters: No matter how compelling Nvidia appears, capital concentration must be managed carefully.

The broader message: Nvidia remains central to the AI economy, and billionaires are voting with their capital. Whether they’re buying in or hedging out, their moves offer a playbook for executives navigating high-growth, high-risk industries—bet on innovation, but respect volatility.

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