This billionaire has acquired $442 million in Nvidia shares so far this year. Is there information he’s aware of that we aren’t?

Nvidia ( NVDA -1.55%) has consistently ranked among the top artificial intelligence (AI) stocks to own in recent years. Nearly anyone who invested since 2023 has seen gains, but after such an impressive surge, it's reasonable to wonder if the growth has peaked.

Yet, numerous indicators suggest Nvidia's leadership in the industry is far from over — in fact, some of the world’s largest investors are now initiating new stakes in the company.

Daniel Loeb from Third Point started acquiring Nvidia stock at the beginning of 2025, buying $442 million worth over the last two quarters, despite having no position at the start of the year. This holding now makes up close to 6% of his fund, showing strong confidence in the company’s outlook.

His strategy has proven successful so far, but could there be something others are missing?

Worldwide spending on data centers is projected to skyrocket in coming years

Nvidia produces graphics processing units (GPUs) , which are the driving force behind modern AI systems. These GPUs excel at handling multiple simultaneous calculations, making them perfectly suited for tasks like AI model training and inference.

While Nvidia has already moved a significant volume of GPUs, forecasts suggest even greater sales ahead. The appetite for AI computing remains enormous. Major AI hyperscalers are on track to spend $600 billion on data center investments this year, with even larger budgets expected next year. Nvidia projects that global data center investment could reach between $3 trillion and $4 trillion by 2030.

If these figures become reality, Nvidia could emerge as an even bigger winner for shareholders.

So if you feel like you’ve missed your chance, think again. Even prominent investors like Daniel Loeb have entered the stock later than many and still stand to benefit from Nvidia’s ongoing momentum.

Plus, all of this is public information, so these billionaire investors aren’t acting on any hidden insights. If Nvidia’s forecasts hold up, there’s still plenty of potential for gains — but just how much further could the stock climb?

If Nvidia’s projections materialize, it could dramatically outperform the market

Assuming the lower end of the global data center capital expenditure forecast at $3 trillion, historical trends suggest Nvidia could capture roughly one-third of that revenue — equating to $1 trillion. Maintaining its current 50% profit margins, Nvidia could potentially generate $500 billion in profit by 2030.

At present, Alphabet holds the title of the world’s most profitable company, having earned nearly $116 billion in the past year. For Nvidia to reach several times that amount may seem ambitious, but that’s the outlook from Jensen Huang and his leadership team.

GOOG Net Income (TTM) data by YCharts

If we assign a 30x earnings multiple to those profits, Nvidia’s valuation would hit $15 trillion — over three times its current $4.3 trillion market capitalization.

Such an increase would be a significant boon, and if Nvidia’s value triples in the next five years, investors everywhere would benefit, especially since Nvidia is part of the S&P 500 ( ^GSPC -0.13%). Given that the market typically doubles about every seven years, prioritizing Nvidia could make sense considering its growth prospects.

In my view, Nvidia is just as strong a buy now as it has been at any time over the past two and a half years. Anyone who believes the AI boom is far from over should consider following Daniel Loeb’s example in 2025 and adding Nvidia shares to their portfolio.