Nvidia has been pivotal in the AI industry, providing graphics processing units (GPUs) that power advanced AI systems and also offering AI networking and software tools. Despite this strong position, hedge fund manager David Tepper reduced his Nvidia holdings in the third quarter by 9% and invested in Vistra, an electric utility company, which now comprises 2. 2% of his portfolio compared to Nvidia’s 1. 1%. Investors should reconsider both stocks as the trades were made over two months ago. **1. Nvidia:** Nvidia dominates the data center GPU market with a 98% share, essential for AI applications. Beyond chips, Nvidia delivers full data center systems with GPUs, CPUs, and software libraries, cementing its role as a leader in AI. Nvidia’s third-quarter fiscal 2025 results were impressive, with revenue up 94% to $35 billion and non-GAAP earnings rising 103% to $0. 81 per share. The company projects a 70% revenue growth in the next quarter and is expected to increase its earnings by 52% annually through fiscal 2026. This makes its current valuation reasonable, and many analysts suggest buying the stock on dips. **2.

Vistra:** Vistra is the top U. S. competitive power producer, with a diverse energy portfolio including natural gas, coal, nuclear, and solar. It became the second-largest nuclear power company this year following an acquisition. Vistra has a significant presence in key electricity markets, where data center demand is expected to surge, driven largely by AI infrastructure. U. S. electricity demand is also on the rise, forecasted to grow by 2. 4% annually through 2030. In the third quarter, Vistra saw a 53% increase in revenue to $6. 2 billion and a 320% rise in GAAP earnings to $5. 25 per share, citing industrial activity as a growth driver. The company increased its EBITDA guidance for 2024 and 2025 and provided positive guidance for 2026.