By Huileng Tan
Publication Date: 2026-06-08 06:36:00
Stock market darling Nvidia is worth about $5 trillion, but billionaire investor Dan Loeb says the AI chip giant is still undervalued.
Speaking on the “All-In” podcast published Friday, the Third Point CEO pushed back on the idea that Nvidia’s massive market capitalization means its best days are behind it.
“I think we’ll look back at some point in time and say that was a foolish way to think about Nvidia,” Loeb said.
He said Nvidia remains “absolutely” undervalued when judged against its earnings potential over the next several years.
Loeb suggested investors may be underestimating Nvidia because they struggle to process the scale of the company’s market value.
He suggested Nvidia’s size has become a psychological hurdle for investors, particularly among hedge funds and long-short investors who view the stock as a natural short because of its enormous valuation.
Loeb’s comments come as investors debate whether the AI rally can continue after a historic run in Nvidia shares.
The company has emerged as the biggest winner from the generative AI boom, supplying the chips used to train and run models from OpenAI, Google, Anthropic, and other AI developers.
Nvidia shares have surged nearly 14-fold since the start of 2023, making it one of Wall Street’s biggest winners of the AI era. The runup has helped propel CEO Jensen Huang into the ranks of the world’s…