The Motley Fool·2025-06-04 08:40Group 1: Nvidia - Nvidia's stock was sold by several billionaire hedge fund managers in the first quarter, with Ken Griffin selling 1.5 million shares, Israel Englander selling 740,500 shares, and Paul Tudor Jones selling 209,000 shares [6][5][4] - Concerns arose regarding Nvidia's market position due to competition from Chinese AI start-up DeepSeek, which reportedly trained large language models with less powerful chips, leading to fears of reduced demand for Nvidia GPUs [4] - Despite these concerns, Nvidia remains a market leader in data center GPUs and is well-positioned to benefit from the expected 30% annual growth in AI infrastructure spending through 2030 [8][9] - Wall Street anticipates Nvidia's adjusted earnings to grow at 40% annually through fiscal 2027, making its current valuation of 45 times earnings appear reasonable [9] Group 2: Arista Networks - Arista Networks has gained attention as hedge fund managers increased their positions, with Ken Griffin adding 108,000 shares and Israel Englander purchasing 979,600 shares [6] - The company is recognized as a market leader in data center switching platforms, particularly in high-speed Ethernet switches, which are essential for AI workloads [10] - Analysts from JPMorgan Chase suggest that Arista could attract major customers as hyperscalers expand their AI data centers, indicating potential growth opportunities [11] - Wall Street expects Arista's earnings to grow at 12% annually through 2026, although its current valuation of 39 times earnings is considered relatively expensive [12]