Nvidia founder and CEO Jensen Huang speaks about the Vera Rubin AI platform during a question and answer session with reporters at the annual Consumer Electronics Show (CES) in Las Vegas, Nevada, on Jan. 6, 2026.Chipmakers Nvidia and Advanced Micro Devices led an industrywide rally in the U.S. on Thursday, alongside semiconductor manufacturers like Applied Materials, after Taiwan Semiconductor Manufacturing Company reported better-than-expected earnings.Nvidia, the world's most valuable company and the lead ...

Core Insights - Ken Griffin, founder of Citadel, has a net worth exceeding $50 billion and has established Citadel as one of the largest hedge funds globally [1] - In Q2, Citadel significantly reduced its stake in Broadcom and increased its investment in Nvidia, reflecting a strategic shift towards AI-focused companies [2][7] Group 1: Citadel's Investment Strategy - Citadel sold approximately 82% of its long position in Broadcom, which has seen a 91% increase in stock price over the past year, now valued at around $1.63 trillion [3][6] - The decision to sell Broadcom may be influenced by its high valuation at 50 times forward earnings and a limited customer base in its custom chip business [6] - Citadel's investment in Nvidia increased more than fourfold, with the fund now holding over 8 million shares, indicating a strong belief in Nvidia's potential in the AI sector [7] Group 2: Broadcom's Market Position - Broadcom specializes in application-specific integrated circuits (ASICs) for AI workloads, catering to major companies like OpenAI, Alphabet, and Meta Platforms [4] - Analysts remain optimistic about Broadcom, with a price target of $410 suggesting a 21% upside, highlighting its position as a leader in AI custom silicon [5] Group 3: Nvidia's Market Dynamics - Nvidia's stock has rebounded over 90% in the last six months, despite challenges related to U.S.-China trade tensions [10] - The company has made significant investments in AI, including a $100 billion commitment to OpenAI, raising questions about the sustainability of AI demand and spending [11] - Nvidia's current valuation stands at over 41 times forward earnings, with a market cap near $4.7 trillion, indicating a premium price amidst ongoing geopolitical uncertainties [12]