Nvidia (NVDA): Giverny Capital Asset Management’s Cautious Optimism on AI and Comparisons to the Dot-Com Era

1 day ago 4

Soumya Eswaran

Mon, December 15, 2025 astatine 7:45 AM CST 3 min read

Giverny Capital Asset Management, LLC, an concern absorption company, precocious published its third-quarter 2025 capitalist letter. A transcript of the missive tin be downloaded here. The portfolio generated bully results successful the 3rd 4th and returned 6.78% compared to 8.12% for the S&P 500. YTD, the money returned 12.57% compared to 14.83% for the index. Additionally, you tin reappraisal the fund’s apical 5 holdings to spot its champion picks for 2025.

In its third-quarter 2025 capitalist letter, Giverny Capital Asset Management highlighted stocks specified arsenic NVIDIA Corporation (NASDAQ:NVDA). NVIDIA Corporation (NASDAQ:NVDA) offers graphics, compute, and networking solutions. The one-month instrumentality for NVIDIA Corporation (NASDAQ:NVDA) was -6.21%, and its shares gained 32.59% implicit the past 52 weeks. On December 12, 2025, NVIDIA Corporation (NASDAQ:NVDA) banal closed astatine $175.02 per share, with a marketplace capitalization of $4.261 trillion.

Giverny Capital Asset Management stated the pursuing regarding NVIDIA Corporation (NASDAQ:NVDA) successful its 3rd 4th 2025 capitalist letter:

"I volition extremity with a enactment of caution. While I americium excited implicit TSMC's prospects, I besides comprehend that enthusiasm implicit Artificial Intelligence has reached a level of euphoria. In precocious September, NVIDIA Corporation (NASDAQ:NVDA) announced a woody successful which it would put $100 cardinal successful Open Al, the developer of ChatGPT. Open Al volition usage that wealth to bargain Nvidia chips to usage successful caller information centers. Nvidia fundamentally is financing a lawsuit who mightiness not different person the capableness to bargain $100 cardinal of Nvidia chips. Nor does the lawsuit person a proven concern model: Open Al is expected to suffer $14 cardinal successful 2026. Nvidia has done akin deals with different start-ups, astir notably CoreWeave.

Analyst Explains How NVIDIA (NVDA) Can Reach $8 Trillion Market Cap

NVIDIA Corporation (NASDAQ:NVDA) is successful 5th presumption connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 234 hedge money portfolios held NVIDIA Corporation (NASDAQ:NVDA) astatine the extremity of the 2nd quarter, compared to 235 successful the erstwhile quarter. In the 3rd 4th of fiscal 2026, NVIDIA Corporation (NASDAQ:NVDA) reported $57 cardinal successful revenues, marking a 62% twelvemonth implicit twelvemonth growth. While we admit the imaginable of NVIDIA Corporation (NASDAQ:NVDA) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.