Billionaire Money Managers Weighed In on Nvidia Long Before It Released Its Full-Year Results -- and Their Sentiment Couldn't Be Clearer

Core Insights - Nvidia is a leading player in the artificial intelligence (AI) sector, particularly known for its Hopper (H100) and Blackwell GPU architectures, which are essential for AI-accelerated data centers [3][4] - Recent trading activities by billionaire asset managers indicate a significant sell-off of Nvidia stock, raising concerns about the company's future prospects [4][7] Group 1: Trading Activity - Billionaire asset managers have been decisive sellers of Nvidia stock, with notable reductions in holdings by several prominent investors [7][10] - Philippe Laffont sold 39,795,532 shares, a reduction of 80% since Q1 2023; David Tepper sold 9,569,999 shares, a 93% reduction since Q3 2023; Stanley Druckenmiller sold his entire stake of 9,500,750 shares since Q2 2023; and Stephen Mandel sold 6,416,490 shares since Q2 2023 [10] Group 2: Reasons for Selling - The primary reason for the selling activity appears to be profit-taking, as Nvidia's market value increased by approximately $3 trillion [9] - Concerns about increasing competition, particularly from Nvidia's own customers developing AI chips, may also be influencing the sell-off [11][12] - Regulatory challenges, particularly restrictions on AI chip exports to China, pose a risk to Nvidia's sales and market position [13] - Historical trends suggest that new technology sectors often experience bubble-bursting events, raising fears that Nvidia could be significantly impacted if the AI bubble bursts [14] - Nvidia's valuation, particularly its price-to-sales (P/S) ratio, which peaked at over 42, may also be a factor in the selling behavior of these investors [15]