When a hedge fund manager running $25 billion tells you a stock isn’t expensive, it’s worth asking what math he’s using. Dan Loeb, founder of Third Point, is making that case for Nvidia, arguing that the chipmaker trades at roughly 15 times its projected 2027 earnings and just 12 times what he expects it to earn in 2028.
The dot-com bubble comparison doesn’t hold, according to Loeb
Loeb’s argument is straightforward: Nvidia generates substantial cash flows. The dot-com darlings, by and large, did not.
Loeb has described the current AI investment environment as a “super-cycle,” one he believes is still in its early innings. He frames the opportunity through what he calls the “AI stack,” a layered ecosystem that spans energy infrastructure, semiconductor technology, software platforms, and end-user applications.
Third Point has been steadily loading up
