When a billionaire hedge fund manager keeps adding to a position, it's worth paying attention. Dan Loeb's Third Point LLC has been quietly but consistently building its stake in NVIDIA Corporation (NVDA), increasing its holdings to 2.85 million shares in the third quarter of 2025. That's a 2% bump from the previous quarter, and it follows an even bigger move earlier in the year when Third Point first added 1.45 million shares to its portfolio in Q1.

The Numbers Behind the Conviction

According to Third Point's 13F filing for the period ending September 30, Loeb's firm now holds 2.85 million shares, up from 2.8 million in Q2 2025. It's not a massive increase percentage-wise, but it signals continued confidence in Nvidia's trajectory at a time when the AI chip story is evolving from hype to genuine revenue generation.

And the revenue numbers? They're legitimately impressive. Last month, Nvidia reported third-quarter revenue of $57.0 billion, representing a 62% year-over-year jump and handily beating the Street consensus of $54.88 billion. Earnings per share came in at $1.30, topping analyst estimates of $1.25.

Perhaps more telling than the beat itself is the company's forward guidance. Nvidia is projecting fourth-quarter revenue between $63.70 billion and $66.30 billion, well above the current analyst estimate of $61.48 billion. The company also noted that demand for its newest AI chips continues to accelerate, with total revenue for its Blackwell and Rubin platforms potentially exceeding the previously announced $500 billion target through 2026.

Wall Street's Reaction

Wedbush Securities analyst Dan Ives described the quarter as a "Massive beat and raise," noting that Nvidia lifted its January revenue outlook by $3 billion. He emphasized that the company's commentary made it clear the AI boom is still in its "early innings," calling the report a "Major validation moment from the Godfather of AI, Jensen and Nvidia."

Ross Gerber of Gerber Kawasaki Wealth and Investment Management took things a step further with some math that'll interest growth investors. According to Gerber, if Nvidia's earnings reach $6.50 per share in fiscal year 2027—a 42% increase from its forecasted $4.57 per share this fiscal year—the stock could hit $292 per share at 45 times earnings.

Even economists are taking notice. Mohamed El-Erian pointed out that the company's quarterly earnings release "has arguably evolved from a corporate update to a full-blown 'macro event,'" illustrating the rapid growth of AI's systemic importance for markets, companies, and the economy.

Global Expansion and Strategic Partnerships

While the earnings numbers grab headlines, Nvidia has been busy building out its infrastructure partnerships around the world. HUMAIN, backed by Saudi Arabia's Public Investment Fund, recently expanded its strategic partnership with Nvidia to accelerate sovereign AI infrastructure in both Saudi Arabia and the United States.

Meanwhile, Oracle Corp (ORCL) is supercharging its Abu Dhabi cloud region with the Middle East's first Nvidia-powered Oracle Cloud Infrastructure (OCI) Supercluster. These aren't small pilot projects—they're massive infrastructure deployments that signal how seriously governments and major corporations are taking AI capabilities.

Recent Strategic Moves

Last month, CEO Jensen Huang highlighted the growing dominance of the company's CUDA platform, which has become the backbone for nearly every major AI frontier model and an increasingly wide range of scientific and industrial applications. That's the kind of ecosystem moat that's difficult to displace once established.

This month brought more news. Nvidia invested roughly $2 billion in Synopsys, Inc. (SNPS) common stock at a purchase price of $414.79 per share to further expand their partnership. The company is also expanding its open-source artificial intelligence portfolio with a sweeping set of new models, datasets, and development tools designed to accelerate progress in both digital and physical AI.

And at AWS re:Invent, Nvidia and Amazon Web Services deepened their long-running partnership with new integrations across interconnect technology, cloud infrastructure, and AI software. These partnerships matter because they lock in Nvidia's technology across multiple layers of the AI infrastructure stack.

How the Stock Stacks Up

Year-to-date, Nvidia shares have risen 28.4%, which puts the company roughly in line with the VanEck Fabless Semiconductor ETF (SMHX), which gained about 28.57%. The Strive U.S. Semiconductor ETF (SHOC) has done better, escalating 46.27% so far this year.

When you compare Nvidia's performance to its closest peers, the picture gets interesting. Broadcom Inc. (AVGO) and Taiwan Semiconductor Manufacturing Company Ltd. (TSM) have risen approximately 46.61% and 45.00%, respectively, so far this year. Nvidia is trailing some of its peers in 2025, which might explain why investors like Loeb see room for the stock to catch up as its revenue acceleration continues.

The bottom line? Third Point's continued accumulation of Nvidia shares suggests that at least one sophisticated investor believes the AI infrastructure build-out still has significant runway ahead. With revenue guidance consistently beating expectations and strategic partnerships expanding globally, it's a bet that's looking increasingly prescient.