Billionaire Philippe Laffont Has Cumulatively Sold 83% of Coatue's Nvidia Stake and Is Piling Into Wall Street's Hottest Artificial Intelligence (AI) IPO

Core Insights - Coatue Management's billionaire chief, Philippe Laffont, is shifting focus from Nvidia to a newly public AI stock, CoreWeave, indicating a strategic pivot towards high-growth potential in the AI sector [1][15] - The month of May has been significant for investors due to earnings reports, economic data releases, and the Federal Open Market Committee's decisions [1][2] Company Analysis: Nvidia - Laffont has been consistently selling Nvidia stock over the past two years, reducing his position by 83% from its peak of 49,802,020 shares [6][7] - Nvidia's gross margin has surpassed 70% due to overwhelming demand for its GPUs, but competitive pressures are beginning to impact its margins [9][10] - The company faces risks from both external competitors and internal chip development by its top customers, which could diminish its market share in data centers [10][11] - Concerns about a potential AI bubble could pose significant risks to Nvidia, especially since over 90% of its net sales come from the data center segment [12][13] Company Analysis: CoreWeave - CoreWeave, an AI data center infrastructure company, has attracted Laffont's attention, with Coatue purchasing 14,402,999 shares shortly after its IPO [15][16] - The company has ambitious growth projections, with sales expected to rise from $1.92 billion in 2024 to $19.66 billion by 2028, bolstered by a strategic deal with OpenAI [17] - However, CoreWeave is experiencing accelerating net losses and significant debt financing costs, with projected net interest expenses reaching $1.06 billion in 2025 [19] - The rapid innovation cycle of Nvidia poses a risk to CoreWeave, as its reliance on Hopper GPUs may lead to obsolescence and reduced pricing power [20] - The potential for an AI bubble could adversely affect CoreWeave's business, as companies may cut back on AI infrastructure spending [21]