Billionaire Money Managers Are Selling Nvidia Stock Hand Over Fist, With One Notable Exception

Core Viewpoint - A billionaire investor, Chase Coleman, is increasing his stake in Nvidia, contrasting with the trend of other billionaire investors who are selling their shares in the company [1][3][14]. Group 1: Nvidia's Market Position - Nvidia is a leading player in the artificial intelligence (AI) sector, with its market capitalization increasing by over $3 trillion in less than two years [2]. - The company holds a monopoly-like position in the graphics processing unit (GPU) market for high-compute data centers, with strong demand for its Hopper and Blackwell GPUs [9]. - Nvidia's gross margin has exceeded 70% due to the scarcity of AI-GPUs, allowing the company to charge a significant premium for its products [10]. Group 2: Investment Strategy and Factors Influencing Stake Increase - Chase Coleman's investment strategy focuses on growth stocks and innovative trends, making Nvidia's AI advancements appealing [7][8]. - Coleman's fund increased its Nvidia shares from 9,683,550 at the end of 2023 to 10,967,550 by the end of March 2025, following Nvidia's 10-for-1 stock split [6]. - Factors influencing Coleman's decision include Nvidia's strong market position, ongoing demand for its products, and CEO Jensen Huang's ambitious innovation timeline with new AI chips planned for release annually [11][12]. Group 3: Selling Trends Among Other Billionaires - Most billionaire investors have been selling Nvidia shares, likely due to profit-taking after the stock's significant rise [15]. - Notable sales include Stanley Druckenmiller, who sold all 9,500,750 shares, and David Tepper, who reduced his stake by 97% [20]. - The selling trend may also reflect concerns about competition in the AI space and the potential for Nvidia's market share to decline as competitors ramp up production [16][18].