Billionaire Ken Griffin Ditches Tesla for Nvidia Stock. Here’s Why

TLDR

• Ken Griffin’s Citadel sold Tesla stock for the fourth consecutive quarter while increasing Nvidia position by 900%
• Nvidia and Intel announced a $5 billion partnership to create custom x86 CPUs and integrated GPU-CPU designs
• The partnership announcement drove Nvidia’s market value up $150 billion in one day
• Deal targets 220 million AI PC shipments expected by 2028 and expands Nvidia’s addressable market by $50 billion
• William Blair analyst maintains Buy rating on Nvidia, citing incremental revenue opportunities and competitive advantages

Nvidia’s stock surged following two major developments: a $5 billion partnership with Intel and billionaire Ken Griffin’s hedge fund increasing its Nvidia position by 900%. The chip maker’s market value jumped from $4.13 trillion to $4.28 trillion in a single trading day.

Griffin’s Citadel Advisors, the most successful hedge fund in U.S. history by net gains, sold Tesla stock for the fourth consecutive quarter. The fund reduced its already-small Tesla position by 30% during the second quarter.

At the same time, Griffin made Nvidia his second-largest holding. Citadel now has more money invested in Nvidia than at any point since 2022.

Nvidia has returned 1,100% since the artificial intelligence boom began in January 2023. Griffin previously sold the stock in seven of the previous eight quarters before his large purchase in the second quarter of 2025.

The Intel partnership creates custom x86 CPUs for Nvidia’s data center platforms. It also includes plans for chips that combine Intel processors with Nvidia RTX GPU chiplets for personal computers.

CEO Jensen Huang said the collaboration had been in development for nearly a year. The two technology teams have been discussing and architecting solutions during this time period.

Data Center and Consumer Market Opportunities

The deal spans both data center and consumer markets. Huang pointed to massive potential demand in the notebook market alone.

The notebook market sells 150 million units each year. This gives investors insight into the scale of the opportunity ahead.

William Blair analyst Sebastien Naji maintained his Buy rating on Nvidia stock. He views the Intel partnership as beneficial for both companies.

The analyst believes the deal provides Nvidia with incremental revenue opportunities. This comes during strong demand for NVL72 racks.

Intel gains a new customer in the data center market. The partnership also provides funding for Intel’s foundry goals.

For Nvidia, the deal expands access to the large x86 ecosystem. It also enhances the company’s potential in the integrated GPU PC market.

Market Expansion Puts Pressure on AMD

The partnership boosts Nvidia’s total addressable market by roughly $50 billion according to Huang. This expansion puts additional pressure on rival Advanced Micro Devices.

IDC projects about 220 million AI PC shipments in 2028 using x86 architecture. This represents a massive incremental market opportunity for Nvidia.

Naji expects Nvidia to sustain robust growth backed by hyperscaler spending. The company also benefits from accelerating momentum from neocloud, sovereign, and enterprise customers.

Products from the collaboration are not expected to arrive for several years. However, investors are already pricing in the potential benefits.

Wall Street maintains a Strong Buy consensus on Nvidia stock based on 35 Buy ratings. The average price target of $211.69 suggests 20% upside potential from current levels.

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