TLDR
- Tesla mega-investor Leo KoGuan purchased 1 million shares of Nvidia and intends to acquire additional shares, declaring AI is “not a bubble”
- While KoGuan continues holding substantial Tesla investments, he’s been diversifying his portfolio into NVDA and short-term Treasury securities
- Following Nvidia’s Q4 earnings surpassing expectations, UBS reaffirmed its Buy recommendation with a $245 price objective
- Nvidia’s Q4 fiscal 2026 results showed $68 billion in revenue, exceeding Wall Street predictions by approximately $2 billion
- According to UBS analysis, Nvidia’s quarterly revenue has potential to hit $100 billion, with current order commitments stretching through 2027
Leo KoGuan, the billionaire investor famous for his massive Tesla stake, has executed a significant portfolio shift this week — making a substantial investment in Nvidia.
In a post on X, KoGuan revealed his purchase of 1 million Nvidia shares while indicating his intention to increase the position further. “I am convinced AI is NOT a bubble, it is only the beginning,” he declared.
This marks a notable portfolio diversification that began several months ago. In November, KoGuan announced he was moving away from his concentrated Tesla position and had begun allocating capital to 3-month Treasury bills.
Despite maintaining a significant Tesla stake, KoGuan declined to disclose the exact extent of his portfolio rebalancing. “I do think Tesla’s energy, cybercap and Teslabot are NOT fully priced in,” he commented, describing Tesla as “the leading embodied AI on earth.”
Nevertheless, this conviction didn’t prevent him from recognizing Nvidia’s opportunity.
Impressive Financials Meet Subdued Market Response
Nvidia’s fourth quarter fiscal 2026 results delivered undeniable strength. The company posted $68 billion in revenue, surpassing consensus analyst projections by roughly $2 billion. Adjusted earnings per share reached $1.62, topping estimates by $0.08.
Yet the market’s response remained surprisingly restrained. This gap between strong fundamentals and lackluster price movement hasn’t gone unnoticed by Wall Street professionals.
Jefferies analysts highlighted how valuations for companies like Nvidia and Broadcom have become “disconnected from fundamentals.” Jefferies analyst Blayne Curtis characterized both as “the most certain AI winners in our space trading at basement bargain multiples.”
UBS Projects Path to $100 Billion Quarterly Revenue
On February 26, UBS reiterated its Buy rating alongside a $245 price target, emphasizing what it characterized as the company’s most bullish demand outlook to date.
The investment bank highlighted that Nvidia’s committed purchase obligations for inventory components nearly doubled from the previous quarter — following a greater than 60% increase in the prior period.
According to UBS, this aggressive inventory positioning provides Nvidia with sufficient capacity to drive quarterly revenue approaching $100 billion in the near future.
The firm also upgraded its earnings projections, increasing its calendar 2027 EPS estimate to approximately $12.70 and its 2028 forecast to $14.80.
The most significant takeaway: Nvidia’s order pipeline currently extends through 2027, demonstrating persistent and robust customer demand with no signs of weakness.
