TLDR
- Leo KoGuan, Chinese billionaire investor, expanded his NVIDIA position to 2 million shares with approximately $350M in capital
- He purchased an additional 1 million shares with the intention to help “calm the nervous market”
- The purchase occurred during a period of market weakness following military actions by the U.S. and Israel against Iran
- NVDA has declined approximately 5% year-to-date; his primary holding Tesla (TSLA) has fallen nearly 12%
- KoGuan views NVIDIA as the fundamental infrastructure provider for the AI revolution, drawing parallels to Cisco’s position during the internet boom
Leo KoGuan, the Chinese billionaire widely recognized as a major Tesla investor, has made a significant commitment to NVIDIA. Through posts on X, he revealed the acquisition of another 1 million NVDA shares, doubling his position to 2 million shares total.
Based on recent trading prices, the investment required approximately $350 million in capital.
KoGuan executed the purchases in two stages, announcing the first million-share acquisition followed by the second within days. His stated goal was to “contribute a little to calm the nervous market.”
The investment coincides with heightened geopolitical tensions. Military strikes conducted by U.S. and Israeli forces against Iran last month sparked widespread selling across equity and bond markets worldwide, creating widespread investor anxiety.
Through Friday’s close, NVDA has retreated roughly 5% year-to-date. Tesla, which remains a substantial component of KoGuan’s portfolio, has experienced an 11.8% decline during the same timeframe. The S&P 500, by contrast, has fallen less than 2%.
Why NVIDIA?
KoGuan builds his investment strategy around identifying companies that provide essential infrastructure for transformative technological eras. His substantial 2019 bet on Tesla, which made him one of the company’s largest individual shareholders, exemplifies this approach.
His thesis on NVIDIA applies identical reasoning. He identifies the company as the foundational layer of AI computing infrastructure, highlighting its commanding 80%-plus share of the GPU market. He’s made comparisons to Cisco’s position during the 1990s internet expansion.
In public statements, KoGuan has maintained that artificial intelligence remains in its nascent phase, rejecting arguments that current valuations have become excessive.
A Shift in the Portfolio
The NVDA acquisitions mark a substantial diversification from his Tesla concentration. KoGuan has expressed concerns in the past regarding Elon Musk’s attention being split across multiple ventures and his compensation structure, which motivated him to broaden his investment base.
Prior to the NVIDIA purchases, he had allocated some funds into U.S. Treasury securities as part of this rebalancing strategy.
While market participants continue debating AI sector valuations, KoGuan is increasing his exposure rather than reducing risk. His decision to double his NVDA stake during a volatile market environment demonstrates strong conviction in his thesis.
According to GuruFocus, NVDA’s GF Value currently stands at $286.36, with the analysis suggesting the stock may be a possible value trap at present trading levels.
