It has come to my attention – a most curious thing, really – that even after a climb that would make a mountain goat dizzy, certain gentlemen of considerable fortune continue to accumulate shares of Nvidia (NVDA +1.60%). Daniel Loeb of Third Point Capital, a man who likely has a separate room just for counting his money, and David Tepper of Appaloosa Management, a fellow who probably dreams in ticker symbols, are among those adding to their holdings. One wonders if they simply miscalculated the number of zeroes on their order forms, or if something more… peculiar… is afoot.
The stakes, you see, are not merely financial. This is a battle for the very soul of computation, a contest of silicon and algorithms. Others are attempting to build alternatives, to challenge Nvidia’s dominance, but it is like asking a babushka to outrun a locomotive. They may puff and strain, but the outcome is… predictable. And yet, these shrewd investors persist. Why?
A Moat of Software, and a Hint of Witchcraft
Artificial intelligence, naturally, is the current frenzy. Every hyperscaler, every data center, is expanding at a rate that would make a provincial governor blush. They require more power, more processing, more… everything. Nvidia, of course, is supplying it, and their data center revenue swelled by a most respectable 66% in the last quarter. A healthy growth, certainly, but hardly a justification for this continued, almost desperate, accumulation of shares.
The truth, I suspect, lies not in the hardware itself – though that is impressive enough – but in the software. Nvidia has gifted the world CUDA, a toolkit that allows developers to build upon their platforms with relative ease. It is a benevolent gesture, of course, but also a cunning one. Once a researcher has built their entire edifice of AI upon CUDA, switching to another chip is akin to dismantling the cathedral and starting anew. It is… inconvenient. I am told there are now 5.9 million developers entangled in this CUDA web, a number that grows daily. A most impressive, and slightly unsettling, statistic. One might even suspect a touch of enchantment.
Considering this… advantage, I believe Loeb and Tepper are not merely chasing momentum. The stock, at present, trades at a forward price-to-earnings ratio of under 25. A reasonable price, perhaps, for a company that is effectively building the foundations of the future, or at least, a very lucrative corner of it. Though, one must always remember, the future is a slippery thing, and even the most solid foundations can crumble. Still, a small wager, carefully considered, is rarely amiss. Especially when others, equally burdened with wealth and wisdom, are doing the same. One can only hope, of course, that we are not all being led astray by a particularly clever illusion.
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2026-01-25 15:22