Nvidia reported record data center revenue of $62.31 billion, up 75% from a year earlier, and said it expects $78 billion in revenue for the first quarter. The stock was changing hands at $201 and had gained 6.79% year to date, even as Bridgewater Associates founder Raymond Dalio added Nvidia to the fund during the quarter.
The move puts Dalio alongside other heavyweight investors leaning into the same corner of the market. Daniel Loeb bought Nvidia shares in the fourth quarter, while Bill Ackman loaded up on Meta Platforms and David Tepper's Appaloosa Management increased its stake by 2.04%. The buying comes as Nvidia's fourth-quarter revenue reached $68.12 billion and net income rose 94.47% to $42.96 billion.
Meta offered its own evidence for why the trade is drawing so much money. The company generated $60 billion in fourth-quarter revenue, including $58.1 billion in advertising revenue, up 24% from a year earlier, and guided for $115 billion to $135 billion in capital expenditure for AI development. Amazon, meanwhile, reported AWS revenue of $35.58 billion, up 24% year over year, the fastest expansion for the cloud unit in 13 quarters, while advertising revenue climbed 23% to $21.32 billion.
The common thread is not subtle. Billionaire investors including Loeb, Dalio, Ackman, Kenneth Griffin and Tepper are accumulating positions in Nvidia, Meta Platforms and Amazon as the AI boom continues to drive cloud spending and digital advertising growth. Nvidia's data center surge and Meta's huge AI spending plan show why the trade is still attracting fresh money, even after a strong run in the shares.