Billionaire Steven Cohen Sold Point72's Entire Stake in Supermicro and Is Piling Into This Game-Changing Artificial Intelligence (AI) Stock Instead

Core Insights - Point72 Asset Management, led by Steven Cohen, has made significant changes in its investment strategy, particularly in the AI sector, by selling off its entire position in Super Micro Computer and increasing its stake in Nvidia [5][7][16]. Group 1: Point72's Investment Moves - Point72 Asset Management exited its position in Super Micro Computer, selling 45,066 shares before the company's first-ever stock split [8][11]. - The decision to sell Supermicro was influenced by allegations of accounting manipulation and the resignation of its auditor, Ernst & Young, which raised concerns about the company's internal controls [12][13][14]. - In contrast, Point72 increased its stake in Nvidia by 75%, purchasing 1,574,796 shares during the third quarter [17]. Group 2: Super Micro Computer's Performance - Super Micro Computer reported a 110% increase in sales for fiscal 2024, nearing $15 billion, with expectations of 67% revenue growth in the current fiscal year [11]. - Despite strong sales, the company faced scrutiny due to allegations of accounting issues and regulatory investigations, leading to uncertainty that likely influenced Point72's decision to divest [12][14]. Group 3: Nvidia's Market Position - Nvidia's hardware, particularly the H100 GPU, is in high demand, commanding prices between $30,000 to $40,000, significantly higher than competitors like AMD [19]. - The company's gross margin has reached the mid-70% range, driven by strong demand and limited supply of its AI-GPU products [19]. - Nvidia's CUDA platform plays a crucial role in maintaining customer loyalty and maximizing the utility of its GPUs, further solidifying its market position [20]. Group 4: Potential Risks for Nvidia - Nvidia may face challenges in maintaining its pricing power and GPU scarcity as competitors ramp up production and some major customers develop their own AI-GPUs [21][22]. - Historical trends suggest that new technologies, including AI, often experience early-stage bubbles, which could impact Nvidia's valuation if market enthusiasm wanes [23].