Nvidia is undoubtedly the brightest star in the stock market this year. The market generally expects Nvidia's revenue to be $120 billion in fiscal year 25, a year-on-year increase of 97% from $61 billion in fiscal year 24. According to Wall Street analysts' forecasts, Nvidia's free cash flow is expected to reach $78.7 billion and $91.1 billion in fiscal years 2025 and 2026, respectively. This optimistic forecast is mainly driven by the surge in demand for Nvidia's AI chips.

Is Warren Buffett a shareholder of Nvidia?

In fact, Buffett has always been cautious about technology stocks. Even when he bought Apple shares in 2016, he said that "Apple is a consumer product company that uses technology and belongs to the consumer product industry", lest everyone think he has changed his attitude towards technology stocks.

Buffett is considered one of the smartest investors in the world, and he looks for stocks that he thinks are worth holding for the long term. When choosing investment targets, he focuses on the fundamentals of the company, including profitability, stability, growth potential, and management quality.

In recent years, Buffett's Berkshire Hathaway has bought a large number of Apple and Amazon shares and achieved considerable gains. For the investment in Amazon, Buffett once expressed regret for not buying shares earlier, which shows his regret for missing out on high-quality investment opportunities.

However, despite Nvidia's significant growth potential in the fields of AI and data centers, Berkshire Hathaway did not hold its shares as of the end of 2023.

Is it possible for Buffett to buy Nvidia shares in the future?

Answer: Very likely!

What Buffett cares most about when selecting stocks is whether the stock has its own moat. And Nvidia is very similar to Apple, which Buffett holds a large stake in.

Moat refers to the advantages that a company can resist from competitors. These advantages can be technology, brand, monopoly, etc. A company with a deep moat is like building a solid castle that can continue to make stable profits.

Obviously, Nvidia may be the company with the deepest technical moat in the entire US company. Nvidia has created the best GPU in the world, and its product performance far exceeds that of other competitors. Moreover, NVIDIA has planned three generations of development blueprints for the future. From Blackwell Ultra in 2025, to Rubin in 2026, to Rubin Ultra in 2027, it shows that NVIDIA's innovation ability will increase day by day. Not to mention NVIDIA's impressive financial reports in recent quarters, both revenue and profit are amazing.

Who are NVIDIA's shareholders?

As of March 25, 2024, NVIDIA's major shareholders are:

• Vanguard Group: 8.30%
• BlackRock Group: 7.33%
• FMR LLC: 5.19%
• Huang Renxun: 3.79%

It is worth mentioning that the current AI fever has a tendency to cool down, and many investors have begun to worry about whether NVIDIA's value is overvalued, and have a negative attitude towards NVIDIA's rise in the second half of the year. However, Pelosi, the "Capitol Hill Stock God", bought 10,000 shares of NVIDIA on June 26. In fact, as early as the beginning of 2024, Pelosi's investment income from Nvidia has exceeded her annual salary as a member of Congress. Analysts pointed out that if Nvidia continues to perform well in the second half of the year, even if the increase is only half of that in the first half of the year, Pelosi's new purchase of 10,000 shares will bring her about $1 million in income, which is more than five times her annual salary.

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