As some big-name billionaire investors look to take profits off the table of their winning Nvidia (NASDAQ: NVDA) positions, everyday investors might be wondering where to look next.
Undoubtedly, Nvidia shares might be a bit choppier and less rewarding in recent months, but when you look at the five-year chart, it’s clear that the name has deserved the latest cooldown period. And as shares correct a bit further as the semiconductors move choppily, there might be another shot to snag shares of Nvidia at an even bigger discount.
Of course, semiconductors tend to be quite cyclical, and while AI compute demand is advancing at a staggering pace, there will always be a bit of a discount as investors begin to doubt the sustainability of the impressive earnings growth. For now, it’s hard to tell which direction Nvidia’s shares will head next. But for those who are up big, as many hedge funds may be, I think it makes sense to play with the house’s money.
At the end of the day, there’s no shame in leaving the table while you’re up big, especially if we’re talking about a position that has completely run away with a portfolio (let’s say a 5% initial position has grown to account for 20% of a portfolio).
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Uber Technologies
In any case, another name that has stood out among big-name hedge funds is Uber Technologies (NYSE: UBER), an absolute cash cow that could continue to do well as it flexes its capital-light model into the era of autonomous vehicles. As chatbots and agents begin hailing rides for users, Uber also stands to benefit because it has a network moat that has proven quite wide and difficult for rivals to crack.
As agentics and autonomous vehicles become the new normal, though, the big question is whether a rival can replicate Uber’s business model and challenge on price. Perhaps the driver side of the network moat dissipates when vehicles drive themselves, leaving just users, many of whom are incredibly price-sensitive and more than willing to ride elsewhere for a lower price.
Make no mistake, there are credible moat challengers that will arise in the age of self-driving. But at the end of the day, the company continues to pull in mouth-watering amounts of cash flow. It’s a winner on rides, food delivery, grocery delivery, and even freight.
Add the powerful platform advantage into the equation, and the commoditization of the self-driving technology itself, and I do think that the discount on shares is overdone. Today, shares go for 18.2 times trailing price-to-earnings (P/E), a multiple that ignores the incredibly strong fundamentals due to uncertainty about the future of ride-hailing.
It seems like Uber realized early that self-driving would become commoditized, sticking with its asset-light nature and doubling down on areas that could actually help it fend off new entrants to the market, many of which specialize in self-driving tech rather than routing.
Perhaps it’s not a mystery why so many smart-money buyers loaded up on the name in the first quarter of 2026.
