This Billionaire Tesla Bull Just Backed Up the Truck on Nvidia Stock

Nvidia (NASDAQ:NVDA) stock has hit a ceiling, and it could stay under it for a while longer, especially since it’ll be time in a few months until that next round of quarterly tech earnings. Of course, there’s GTC 2026 coming up and, with that, there are rumors surrounding some potential surprises for Jensen Huang and company to pull the curtain on. Perhaps a hyper-efficient inference chip to complement its already powerful lineup that’s due for the second half of the year.

If you bought anytime in the past five months, you’re probably thinking that it’s game over for Nvidia. It’s a more than $4 trillion company now, and another doubling of the share price would take it to nearly $9 trillion. That seems a bit outlandish, especially since a bulk of the AI training opportunity is already in the rearview mirror now, right?

As agents and robots look to emerge, perhaps the inference opportunity is enough to keep Nvidia on top of the chip world and the S&P 500. But even with all the bullish tailwinds behind the firm as well as the AI revolution at large, it’s hard to justify buying after a 1,300% gain in five years.

Now that the upside momentum is gone, what else is there to be had in this trade?

If you don’t look at the stock chart, I think it’s safe to say that Nvidia, the company, is actually firing on all cylinders. It’s operating at a very high level, and it’s continuously raising the bar across the industry. The legend that is Jensen Huang has the vision and execution to keep the firm ahead in this AI arms race. If anything, he sounds like he welcomes the competition in chips.

With an enviable gross margin (well above the 75% mark at the time of this writing), Nvidia truly is a standout when it comes to hardware. These are closer to software margins, which, I think, is quite absurd. While there’s definitely the software aspect that adds to the Nvidia walled garden, I think the big question that investors should ask themselves is whether that margin is sustainable. If not, what could knock it back down to earth?

Arguably, rising competition in the AI chip scene might be a source of pressure. And, of course, a weakening of AI demand and an ensuing drop in demand for chips, racks, and all else might put the impressive figure in jeopardy. In the meantime, though, AI is just humming along, and there’s no reason to believe that a cycle reversal is in play.

If anything, the secular tailwinds behind Nvidia and the rest of the pack might get stronger. Higher memory costs and other bottlenecks holding back broader AI adoption stand out as timelier risks. Either way, though, I’m not so sure how many analysts are pricing in Nvidia’s high margin, high growth trajectory.

It doesn’t look sustainable, but if it lasts longer than expected, the stock might be underpriced right here. And that alone might be enough reason to buy, even if you missed the move that preceded the more-recent consolidation.

Billionaire Leo KoGuan is perhaps best-known for being one of the biggest bulls riding behind Tesla (NASDAQ:TSLA). The man has since revealed he’s been placing massive bets on Nvidia to the magnitude of a million shares (worth around $180 million). And he might not be done buying either. KoGuan rejects the “AI bubble” chatter and seems to think recent volatility has helped pave the way for such a buying opportunity. 

That’s a bold bet and an interesting take on a stock that many are getting impatient with, even as shares start looking cheaper and cheaper from a price-to-earnings (P/E) multiple perspective. Nvidia clocked in an applause-worthy quarter, which was met with pin-drop silence. Perhaps the lack of reaction is more due to market-wide fears than anything company-specific.

As mentioned previously, the firm is doing just about everything right. It’s just that the stock isn’t reacting accordingly. For the bulls, like KoGuan, perhaps that’s nothing more than opportunity knocking.