Shares of Nvidia (NASDAQ: NVDA) used to be the hot tech trade on Wall Street, but this year, they’ve been quite mild, actually losing close to 4% year to date, at least as of the time of this writing. So, what went wrong for the AI chip king? Nothing at all. The company is actually thriving right now, but you certainly wouldn’t know it just by checking in on the stock, which has actually not really done much since last August.
Of course, the latest Nvidia GTC conference had a slew of impressive features, but none were enough to really excite investors. I have no idea how long the stock will trade sideways.
Another year, perhaps two years or more?
It’s impossible to know. Just because AI remains the hot topic doesn’t mean the largest company on the planet is going to appreciate at an above-average rate. For now, some billionaires are ready to move on, while others are inclined to step in. Arguably, it’s a good idea to buy after less-heated action if you’re looking for value. At the same time, though, Nvidia is no longer the momentum play.
Either way, some notable billionaires have been trimming their holdings, including the likes of legendary investor Chase Coleman of Tiger Global Management, who trimmed by around 6% (that works out to over 11 million shares, by the way) as of the last quarter.
Of course, there were some notable buyers as well, but Tiger Global’s sales, I think, were sizeable and perhaps the most remarkable sale from the fourth quarter of 2025. Either way, the big takeaway is that some smart folks have shown they’re willing to ring the register. That might be the wise move, even as some treat the latest “weakness” as a buying opportunity.
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CP Rail stock has attracted some smart money lately
Of course, even billionaire hedge funds don’t have a crystal ball. And while Nvidia stock might still prove a great generational growth stock with more upside for the year ahead, I’d personally look elsewhere for lower prices of admission.
So, what’s caught the interest of some legendary money managers? Take CP Rail (TSX: CP) stock, which has seen quite a few hedge funds step up to the plate. Of course, just like with Nvidia, there have been buyers and sellers on both sides.
But, either way, I think the value proposition behind CP Rail is starting to get interesting. With shares correcting sharply after a January-February spike, it might make sense to follow some of the smart money managers buying into the name right here. Of course, it’s impossible to tell what billionaires have been up to in the first quarter.
We’ll have to wait several more weeks to find out. In any case, CP stock seems to be in a worse, longer-lasting rut than Nvidia’s, with the stock consolidating for around three-and-a-half years. Could Nvidia go sideways for a similar timeframe? It’s impossible to know. Either way, CP stock had high expectations, which seem to have been reset a bit.
The bottom line
Despite the latest slide back to $110 per share, though, the stock goes for 24.5 times trailing price-to-earnings (P/E), making it one of the pricier railway stocks on the market. Personally, I’d wait for a lower multiple before getting in. Arguably, Nvidia at 37.2 times trailing P/E might be a better deal than CP at 24.5 times, given their respective growth profiles.
