TLDR
- Chinese billionaire Leo KoGuan doubled his NVIDIA stake to 2 million shares, spending roughly $350M
- He said he bought the extra 1 million shares to help “calm the nervous market”
- The move comes as global markets have weakened following U.S. and Israeli military action against Iran
- NVDA is down about 5% year-to-date; Tesla (TSLA), his other major holding, is down nearly 12%
- KoGuan sees NVIDIA as the defining infrastructure company of the AI era, comparing it to Cisco in the 1990s
Leo KoGuan, a Chinese billionaire long known as one of Tesla’s biggest bulls, has turned his attention to NVIDIA. He disclosed on X that he bought an additional 1 million NVDA shares, bringing his total holding to 2 million.
The purchases are estimated to have cost him around $350 million based on recent closing prices.
KoGuan announced the first million-share buy days before the second, moving quickly to build out the position. He said he hoped the move could “contribute a little to calm the nervous market.”
The timing is tied directly to rising geopolitical stress. U.S. and Israeli military operations against Iran last month triggered a broad selloff across global equities and bonds, rattling investor confidence.
NVDA is down around 5% so far this year through last Friday’s close. Tesla, which still makes up a large chunk of KoGuan’s wealth, has dropped nearly 12% over the same period. That compares to a decline of less than 2% for the S&P 500.
Why NVIDIA?
KoGuan’s investment philosophy has always centered on backing companies that define an era’s core infrastructure. He placed a massive early bet on Tesla in 2019, becoming one of its top individual shareholders.
His view on NVIDIA follows a similar logic. He sees it as the backbone of AI computing, pointing to its over 80% market share in GPUs. He’s drawn a comparison to Cisco’s role during the internet boom of the 1990s.
KoGuan has said publicly that he believes AI is still in its early stages, pushing back on the view that valuations in the space are stretched.
A Shift in the Portfolio
The NVDA purchases represent a meaningful diversification away from Tesla. KoGuan has been vocal in the past about his frustration with Elon Musk’s divided focus and high compensation package, which prompted him to start spreading his holdings more broadly.
He had previously moved some capital into U.S. Treasury bonds as part of that shift.
Despite the debate in markets over AI valuations, KoGuan is leaning in rather than pulling back. His doubling of the NVDA position during a period of elevated market stress signals conviction rather than caution.
NVDA’s GF Value is currently listed at $286.36, with the stock flagged as a possible value trap by GuruFocus at current prices.
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