Jim Simons' Renaissance drops $520 million on surging tech stock

Core Insights - Renaissance Technologies has significantly increased its investment in Micron Technology (MU), raising its stake by over 50% with an addition of nearly 1.81 million shares, amounting to approximately $520 million in new exposure, bringing the total position to nearly $859 million, making Micron a key holding for the fund [1][4] - The investment comes during a period when Renaissance reduced its stakes in other major tech companies like Nvidia and Alphabet, indicating a strategic shift towards Micron, which has been one of the best-performing tech stocks, with a 231% increase over the past six months and over 73% in the last three months [2][3] - The timing of this investment aligns with a transition in the memory market from oversupply to tightening supply, with rising prices and Micron's guidance suggesting potential margin increases through 2026, driven by the demand for high-bandwidth memory (HBM) related to AI applications [3][4] Company Activity Snapshot - Renaissance Technologies' market value has decreased to $64.5 billion from a prior $75.8 billion, with a net outflow of -14.9% of total market value, indicating a significant shift in investment strategy [7] - The firm made new purchases in 466 stocks, added to 1,030 stocks, sold out of 738 stocks, and reduced holdings in 1,680 stocks, reflecting a dynamic portfolio adjustment [7]