Does Warren Buffett invest in Nvidia?
Warren Buffet is not buying any shares of NVIDIA any time soon. NVIDIA is “deep high” in bubble territory. Buffett would only consider buying NVIDIA if the bubble were to burst and NVIDIA were to crash 70% or more, which is highly unlikely for now.
Warren Buffett's Berkshire Hathaway as of the end of 2023 had no stake in Nvidia, a company at the center of rising investor enthusiasm about growth opportunities related to artificial intelligence.
The Vanguard Group, Inc. is currently the largest shareholder, with 8.3% of shares outstanding.
After rising over 1,000% in the last five years to a market cap greater than $2 trillion, Nvidia has made millions of dollars for investors who held for the long term.
- The Vanguard Group (8.280%)
- BlackRock (5.623%)
- Fidelity Investments (5.161%)
- State Street Corporation (3.711%)
- Jensen Huang (3.507%)
- Geode Capital Management (2.024%)
- T. Rowe Price (2.013%)
- JPMorgan Chase (1.417%)
A return to lower interest rates will help shares maintain their current mid-30s forward earnings multiple. Both these factors could be more than enough to send NVDA stock to prices well north of $1000 per share. With this in mind, those deciding to skip or cash out of NVDA stock could end up regretting the move.
The top individual shareholders of Nvidia are Jen-Hsun ("Jensen") Huang, Colette M. Kress, and Mark A. Stevens, and the top institutional shareholders are Vanguard Group Inc., BlackRock Inc. (BLK), and FMR LLC.
The stock holds a E Accumulation/Distribution Rating. That shows very little buying from institutional investors in recent months. Despite its many positives, Nvidia stock is not a buy right now. Because the stock is below the 50-day line, investors will need to wait until the stock forms a new base.
Nvidia might have the most profitable strategy to benefit from AI. Nvidia (NVDA -10.01%) delivered stunning growth over the last year. Graphics processing units (GPUs) are the hot commodity for powering artificial intelligence (AI) in data centers, and Nvidia has long dominated the GPU market.
Key Points. Nvidia's data center is its largest target market platform by revenue. Data center is also the company's fastest-growing platform. Nvidia's profits are growing faster than its revenue because its data center platform is more profitable than its overall business.
What is the future outlook for NVIDIA stocks?
Stock Price Forecast
The 41 analysts with 12-month price forecasts for NVIDIA stock have an average target of 916.76, with a low estimate of 460 and a high estimate of 1,200. The average target predicts an increase of 20.31% from the current stock price of 762.00.
- The all-time high NVIDIA stock closing price was 950.02 on March 25, 2024.
- The NVIDIA 52-week high stock price is 974.00, which is 17.9% above the current share price.
- The NVIDIA 52-week low stock price is 270.71, which is 67.2% below the current share price.
TSMC, the world's leading foundry, and Synopsys, the leader in silicon to systems design solutions, have integrated NVIDIA cuLitho with their software, manufacturing processes and systems to speed chip fabrication, and in the future support the latest-generation NVIDIA Blackwell architecture GPUs.
| Name | % Total Shares Held | Change % |
|---|---|---|
| Vanguard Total Stock Mkt Idx Inv | 2.99 | 1.46% |
| Vanguard Institutional 500 Index Trust | 2.49 | 0.95% |
| SPDR® S&P 500 ETF Trust | 1.19 | 0.77% |
| Fidelity 500 Index | 1.18 | 1.02% |
NVIDIA (NVDA)
Nvidia is one of those huge gainers that's benefiting investors in funds the most. Institutions, like ETF providers, own a majority (67.7%) of the outstanding shares. And Vanguard is the biggest Nvidia investor of them all. The ETF giant owns 204.5 million shares or 8.3% of the shares outstanding.
Today, virtually every major tech company, including Amazon, Google, Meta, Microsoft and Oracle, has made use of Nvidia chips.
So, if you had invested in Nvidia ten years ago, you're likely feeling pretty good about your investment today. According to our calculations, a $1000 investment made in March 2014 would be worth $172,169.75, or a 17,116.97% gain, as of March 1, 2024.
Even though 54 out of 60 analysts still rate Nvidia a buy, the stock has gotten ahead of the analysts' traditional consensus 12-month price target. That combination of favorable ratings and a target below the current price gives some food for thought: A year isn't a lengthy period for a committed long-term investor.
So, Nvidia's revenue is on track to increase 5 times in a space of five years considering its fiscal 2024 forecast, translating into a compound annual growth rate (CAGR) of 38%. A similar CAGR over the next five years would take Nvidia's annual revenue to a whopping $295 billion in fiscal 2029.
Gaming was the best use-case for GPUs and it was responsible for the majority of Nvidia's revenue up until fiscal 2022. Since then, most of Nvidia's revenue has come from somewhere else, thanks to artificial intelligence (AI).
Who sold Nvidia stock?
Billionaire Stan Druckenmiller Is Selling Nvidia and Buying 2 Artificial Intelligence (AI) Stocks Instead.
To help customers make more efficient use of their AI computing resources, NVIDIA today announced it has entered into a definitive agreement to acquire Run:ai, a Kubernetes-based workload management and orchestration software provider.
High-end chip maker Nvidia (NVDA -3.33%) has smashed expectations year over year, with annualized revenue growth of 60% since 2021. With yearly releases of improved graphics processing units (GPUs) for both gaming and cloud computing, the company has been able to continuously offer the best GPU hardware on the market.
However, from a valuation perspective, I don't think Nvidia stock is expensive or overpriced. In fact, it may still represent good value. Nvidia currently trades at 35.4x forward earnings, making it more expensive than the S&P 500 (SPX), but it's by no means too expensive for the tech sector.
You might expect NVDA to be the clear winner here, as its recent performance has been so impressive, and INTC is no longer considered a growth company — but that kind of outperformance is hard to maintain. Analysts expect NVDA to grow at about 36% per year over the next five years, which is certainly above average.
