Key Takeaways
- Tesla billionaire Leo KoGuan purchased 1 million Nvidia shares, declaring artificial intelligence is “not a bubble”
- While maintaining significant Tesla holdings, KoGuan has been diversifying his portfolio into NVDA and Treasury securities
- Following strong Q4 results, UBS reaffirmed its Buy rating on Nvidia with a $245 price target
- Nvidia delivered Q4 fiscal 2026 revenue of $68 billion, surpassing analyst expectations by approximately $2 billion
- Analysts at UBS believe Nvidia could achieve $100 billion in quarterly revenue, with customer orders now stretching into 2027
This week saw a significant portfolio move from Leo KoGuan, the billionaire investor renowned for his massive stake in Tesla, as he made a substantial entry into Nvidia.
In a post on X, KoGuan revealed his purchase of 1 million Nvidia shares and indicated plans for additional acquisitions. “I am convinced AI is NOT a bubble, it is only the beginning,” the investor declared.
KoGuan’s investment strategy has undergone notable changes in recent months. In November, the billionaire announced he was diversifying away from an all-Tesla portfolio, beginning to accumulate 3-month Treasury bills.
While his Tesla stake remains substantial, KoGuan declined to specify the exact reduction amount. “I do think Tesla’s energy, cybercap and Teslabot are NOT fully priced in,” he noted, describing Tesla as “the leading embodied AI on earth.”
Nevertheless, this conviction hasn’t prevented him from exploring opportunities in Nvidia.
Impressive Results Meet Tepid Market Response
Nvidia’s fiscal 2026 Q4 performance was undeniably strong. The company posted $68 billion in revenue, exceeding Wall Street consensus by roughly $2 billion. Adjusted earnings per share reached $1.62, topping projections by $0.08.
Yet the market’s reaction remained subdued. This gap between exceptional performance and price movement has captured analyst attention across the Street.
Jefferies highlighted that valuation metrics for companies like Nvidia and Broadcom have become “disconnected from fundamentals.” 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 Revenue Quarters
On February 26, UBS reiterated its Buy rating and $245 price target, pointing to what analysts described as the most bullish demand outlook they’ve heard from Nvidia management.
The investment bank highlighted that Nvidia’s inventory purchase commitments nearly doubled from the previous quarter — following more than 60% growth the quarter before.
According to UBS, this inventory expansion provides Nvidia with sufficient capacity to drive quarterly revenue toward the $100 billion mark in upcoming periods.
The firm also revised its earnings projections upward, increasing calendar 2027 EPS estimates to approximately $12.70 and 2028 forecasts to $14.80.
The most significant indicator: Nvidia’s order backlog has now extended into 2027, demonstrating sustained customer demand with no signs of weakening.
