Nvidia or Alphabet: Billionaire Paul Tudor Jones Makes a Big Move on One Top AI Stock

Is it 1999 all over again? That is a specter raised frequently in recent times, as market watchers mull over the possibility we are in an AI-driven bubble that is about to pop.

The issue has certainly been on billionaire Paul Tudor Jones’ mind, who recently said that today’s market feels strikingly similar to the period just before the 2000 dot-com crash. Jones, the founder and CIO of Tudor Investment Corporation, which has assets under management of about $17 billion, has been sounding warnings about the 2025 market backdrop and comparing it directly to the tech-fueled surge of 1999, while stressing that the current setup could be “so much more potentially explosive.”

“It feels exactly like 1999,” said Tudor Jones, who has a net worth of $8.1 billion, imploring investors to think as if it were October 1999 all over again, a time when the NASDAQ surged dramatically before crashing just months later.

So, what has Tudor Jones been doing to ready himself for a potential market meltdown? Becoming more selective in his AI-related holdings, it appears. Both AI giants Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOGL) have featured in the Tudor Investment portfolio, but following a Q3 reshuffle, his position in one is now far more pronounced than the other, representing a sharp reversal of his previous stance.

So, let’s give the pair a closer look, and with some help from the TipRanks database, we can see whether the Street supports Tudor Jones’ recent moves.

Nvidia

Probably no company embodies the rise of AI better than Nvidia, as the chipmaker’s route to becoming the world’s most valuable company has been down to the central role it plays in the AI industry.

Simply put, Nvidia is the engine behind AI, driving much of the infrastructure that makes the entire boom possible. Its chips power everything from model training to data-center expansion, and its dominance is such that it commands a 90% share of the AI accelerator market.

The unique thing here is that Nvidia doesn’t just supply the chips that run the data centers behind this game-changing tech. It also offers the software ecosystems, networking gear, and full-stack platforms that tie everything together. This is why Nvidia has become the undisputed AI chip king.

The Jensen Huang-led company’s astounding growth spurt, which kicked off in 2023, first took Wall Street by surprise, but has since become almost par for the course. Earnings reports have become regular beat-and-raise affairs, with only the extent of the beat getting scrutinized. The recent FQ3 readout featured the hallmark ingredients. Revenue reached a record $57 billion, up 62.5% year-over-year, and topping expectations by $1.91 billion. Adj. EPS came in at $1.30, ahead of the forecast by $0.04. Looking ahead to FQ4, the company called for revenue of $65.0 billion, with a margin of error of about 2%, compared with the $61.84 billion analysts had in mind.

As for Tudor Jones’ stance, that readout must have offered some vindication. The billionaire’s fund bought 1,010,572 NVDA shares in Q3, upping its stake by 610%, a purchase currently worth ~$186 million.

And Wall Street analysts share a similar sentiment. For J.P. Morgan’s Harlan Sur, an analyst who ranks among the top 1% on Wall Street, the value proposition here remains sound.

“Nvidia’s order pipeline (which we estimate implies ~$330B of DC revenue on deck for CY26) suggests demand will continue to outstrip supply in the near term, with Nvidia’s revenue ramp over the next several quarters largely being dictated by the rate and extent to which supply chain capacity can scale,” the 5-star analyst said. “To that end, we see sufficient capacity opening up to comfortably support a doubling of rack shipments next year to 60K+ (from 28-30k in CY25). With supply commitments up 63% Q/Q and inventory up 32%, Nvidia is clearly gearing up for further significant upside to revenues in the coming quarters… While the debate on AI spend over the longer term is certainly not settled, near-term momentum continues to build, and Nvidia is positioned to capture a significant majority of the incremental spend (as it has over the past ~3 years).”

Accordingly, Sur rates NVDA shares as Overweight (i.e., Buy), while his $250 price target points toward 12-month returns of 37%. (To watch Sur’s track record, click here)

Most on the Street share Sur’s enthusiasm; based on a mix of 39 Buys, and 1 Hold and Sell, each, the stock claims a Strong Buy consensus rating. Going by the $258.1 average price target, the shares will gain 41% in the year ahead. (See NVDA stock forecast)

Alphabet

If Nvidia’s AI journey comes across as a pretty straightforward success story built on continued momentum, Google owner Alphabet’s AI journey has been a rather more curious one.

While the tech giant has been involved in AI research for years – it is home to DeepMind, the renowned AI lab responsible for some of the most significant advances in the field – the initial rise of GenAI/ChatGPT was seen as a big threat to Google’s bread-and-butter, its all-conquering search business. But the past few months have seen that narrative take a 180-degree turn.

The company has upped its AI game considerably. Last month, Google unveiled its newest AI model, Gemini 3, which outperformed industry benchmarks and received widespread praise from users, researchers, and developers. The Gemini app now has 650 million monthly active users, while AI Overviews, which appear at the top of search results, reach 2 billion users each month. Additionally, its Nano Banana Pro tool can generate and edit images on the fly, and the company is embedding AI features across Workspace apps, making suggestions in Docs, Sheets, and Slides.

Meanwhile, the company’s Q3 results also offered a display of strength. Total revenue increased 16% year-over-year to $102.3 billion, surpassing $100 billion for the first time and beating the $100.1 billion consensus estimate. At the other end of the equation, EPS came in at $2.87, well above the $2.27 analysts had anticipated.

All of that has seen Alphabet become the current AI leader, and investors have responded in kind. The stock has surged by 69% so far this year, far outpacing all its Mag 7 peers.

But maybe the big gains have made Tudor Jones consider his position here. During Q3, he sold 197,690 GOOG shares (48% of his stake) and got rid of his entire position in GOOGL (Alphabet is dual-listed) – 81,572 shares.

At the same time, not everyone on the Street is convinced in the GOOGL story. Rosenblatt analyst Barton Crockett pushes back against the current narrative.

“At this point, the Street has jumped onto the notion that Google is winning in AI, and that AI is market expansive for search versus competitive. Our cautionary stance is that this conclusion looks like only a temporary place right now, not the future. ChatGPT is seemingly larger than Google in AI usage with 800M weekly users, which could be billions on a monthly basis… In essence, these and other aggressively funded AI LLM plays (toss Perplexity and Grok into the mix) either compete meaningfully with Google, or the whole AI trade is overdone. Yes, Google’s capabilities are enormous. But so are OpenAI’s, Meta’s, and others. Right now Google’s cash flow is substantially derived from a dominant position in a winner-take-all search market,” Crockett opined.

Bottom line, Crockett rates Alphabet shares as Neutral, while his $279 price target suggests the shares have overshot by 13%. (To watch Crockett’s track record, click here)

While 6 other analysts join Crockett on the sidelines, with an additional 30 Buys, the stock claims a Strong Buy consensus rating. However, the $320,15 average target implies the stock is fully valued. With this in mind, keep an eye out for either price target hikes or rating downgrades shortly. (See GOOGL stock forecast)

To find good ideas for AI stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.