This Billionare Has Bought $442 Million Worth of Nvidia Stock This Year. Does He Know Something We Don't?

Nvidia (NVDA -1.55%) has been at the top of the list of best artificial intelligence (AI) stocks to buy over the past few years. Anyone who has bought shares at nearly any time since 2023 has made money, but after the incredible run it has been on, it would be logical to think that there isn't much gas left in the tank.

However, multiple signs are pointing toward Nvidia's continued dominance -- so much so that some of the largest investors are starting new positions in Nvidia.

Daniel Loeb of Third Point began accumulating Nvidia shares at the start of 2025, purchasing $442 million worth over the past two quarters, after owning none at the beginning of 2025. This represents nearly a 6% position sizing within his fund, indicating a clearly bullish bet.

So far, it has worked out well for him, but is there something going on that others don't know about?

Global data center spend is expected to rise dramatically over the next few years

Nvidia manufactures graphics processing units (GPUs), which are the computing muscle behind today's AI models. GPUs can process multiple calculations in parallel, making them ideal for computing tasks such as AI training and inference.

Although Nvidia has already sold a ton of GPUs, it's slated to sell even more over the next few years. The demand for AI computing power has been insatiable so far. Even though the biggest AI hyperscalers plan to spend $600 billion on data center capital expenditures this year and even more next year, Nvidia believes global data center spending can rise to $3 trillion to $4 trillion by 2030.

That's a massive increase, and if this projection turns out to be true, it would result in Nvidia becoming an even bigger winner for investors.

So if you think you're too late to the party, don't. Even billionaire investors like Daniel Loeb can get in much later than many investors and still benefit from Nvidia's rise.

Additionally, this information is publicly available, so billionaire investors aren't acting on any additional information. Nvidia has a ton of room to run if they're right, but just what kind of run-up should investors expect?

Nvidia will crush the market if this projection pans out

Using the bottom end of the global data center capital expenditure range of $3 trillion, past performance suggests that Nvidia captures about a third of total revenue. That would indicate revenue of $1 trillion. If Nvidia can maintain its 50% profit margins, that would indicate profits of $500 billion by 2030.

Currently, Alphabet is the most profitable company in the world, generating nearly $116 billion in profits over the past 12 months. For Nvidia to be that much larger is hard to believe, but it's what Jensen Huang and his team at Nvidia are projecting.

GOOG Net Income (TTM) data by YCharts

If you apply a 30 times earnings multiple to this, that indicates that Nvidia would be a $15 trillion company, more than triple from Nvidia's current $4.3 trillion market cap.

That's a major upside, and if Nvidia delivers a triple over the next five years, investors everywhere would benefit due to Nvidia's inclusion in the S&P 500 (^GSPC -0.13%). Still, because the market tends to double only once every seven years, it would be logical to overweight Nvidia due to its potential upside.

I think Nvidia is as good a buy as it was during any time over the past two and a half years, and investors who believe the AI arms race will continue should be scooping up shares right now, just like billionaire Daniel Loeb has done in 2025.