Billionaire Philippe Laffont Sold Coatue's Entire Stake in Super Micro Computer and Piled Into This Artificial Intelligence (AI) Goliath for the First Time in 9 Quarters

Core Insights - Coatue Management's billionaire investor Philippe Laffont sold over $300 million worth of Super Micro Computer shares, shifting focus to Nvidia, Wall Street's top stock [1][12] - The quarterly Form 13F filings provide insights into institutional investors' stock preferences, revealing trends and sectors attracting significant attention [2] Company Actions - Laffont completely exited his position in Super Micro Computer, selling all 8,886,735 shares valued at over $303 million [6] - The decision to sell Super Micro may have been influenced by profit-taking, as shares had risen significantly from below $20 to between $40 and $50 [7] Market Context - Super Micro Computer faced challenges due to past allegations of fraud and management issues, which damaged investor trust [8][9] - The competitive landscape in AI-data center infrastructure may also have pressured Super Micro's margins, despite year-over-year sales growth [10] Investment Shifts - Laffont added 13 new stocks to his portfolio and increased his stake in Nvidia by 34%, acquiring 2,942,694 shares after previously selling over 41 million shares [12][13] - Nvidia's strong position in AI-GPUs and its innovative product pipeline contribute to its appeal, despite potential risks of competition and market corrections [15][19] Future Considerations - While Nvidia is currently favored, historical trends suggest that emerging technologies often face bubble-bursting events, which could impact its stock performance [18] - The increasing competition in the AI-GPU market may lead to reduced pricing power and gross margins for Nvidia [19]