Wealthy individual offloads Nvidia stock holdings, garnering close to a billion dollars in the process.
In a notable move, Ken Griffin, one of the world's wealthiest individuals and the founder of Citadel, a leading hedge fund, sold nearly 9.3 million shares of Nvidia this year, amounting to approximately $993 million. This move saw Griffin's Nvidia position decrease by around 80%.
Despite the significant sale, many analysts continue to recommend Nvidia stock, which has been a prominent market star, with shares gaining over 200% last year and over 215% this year. Nvidia's WKN is 918422.
The sales were primarily due to profit-taking, as Griffin shifted his focus towards other AI-related investments. In particular, he increased his investment in Palantir Technologies, another AI-focused company that has seen a dramatic surge since early 2023.
The reasons behind this move include strategic diversification within the AI sector. Despite Nvidia’s strong financial results, with revenue up 69% due to robust demand for AI infrastructure and a major earnings increase, Griffin and other billionaires saw significant upside in Palantir, whose stock performance has outpaced Nvidia recently.
Moreover, some investors likely anticipated different growth trajectories among AI infrastructure companies. Palantir’s AI-focused business model and impressive price appreciation (2,000% return since 2023) attracted funds away from Nvidia.
It's important to note that Nvidia remains a strong company in the AI chip sector with solid earnings and CEO Jensen Huang’s comments on "incredibly strong" demand. The sale was more a tactical move to capture value and bet on other emerging AI companies rather than a negative signal on Nvidia.
The sale could potentially indicate speculation on an imminent end to the rally, but Nvidia's high demand due to the growing complexity of AI and the increasing need for components for data centers suggests otherwise. Nvidia benefits significantly from the hype around artificial intelligence (AI) as it provides a crucial foundation for this technology with its chips.
Investors should also consider the rising competition from companies like AMD or Intel. However, Nvidia's chips enable the constant increase in computing power required for increasingly complex and demanding AI applications.
From the perspective of BÖRSE ONLINE, Nvidia remains a buy. Despite its current value surpassing that of Apple, making it the most valuable company in the world, Nvidia's WKN is 918422. As always, investors are advised to conduct their own research and consult with financial advisors before making investment decisions.
[1] Source: Forbes [2] Source: CNBC
Finance experts are still recommending Nvidia stock, despite Ken Griffin's selling of nearly $993 million worth of Nvidia shares and reducing his position by 80%. Griffin's focus has shifted towards AI-related investing, with an increased investment in Palantir Technologies, another AI-focused company that has seen a dramatic surge since early 2023.
