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Billionaire Philippe Laffont Sold 53% of Coatue's AMD Stake in Favor of an ETF Whose Underlying Asset Has Gained Nearly 165,000,000% in 15 Years
The Motley Fool· 2025-08-26 07:06
Core Insights - Coatue Management's billionaire investor Philippe Laffont has been selling shares of AMD for two years while increasing investments in the iShares Bitcoin Trust ETF during the second quarter of 2025 [1][15]. Group 1: AMD Investment Activity - Laffont has significantly reduced Coatue's stake in AMD, from 13,974,624 shares at the midpoint of 2023 to 1,530,241 shares by June 30, 2025, representing a 53% reduction in the remaining stake during the second quarter [8][9]. - The selling of AMD shares is attributed to profit-taking, as Laffont's initial investments were made when AMD shares traded between $60 and $100, while much of the selling occurred when shares were priced between $100 and $200 [9][10]. - Concerns about AMD's competitiveness against Nvidia in AI-accelerated data centers are raised, as AMD's market share in this segment remains minimal compared to Nvidia's dominance [11]. Group 2: Bitcoin ETF Investment - Laffont purchased 56,508 shares of the iShares Bitcoin Trust ETF, valued at approximately $3.5 million, indicating a strategic move into cryptocurrency investments [16]. - The underlying asset, Bitcoin, has experienced a staggering increase of nearly 165,000,000% over the past 15 years, making the ETF an attractive option for exposure to Bitcoin without direct ownership [17]. - The investment in Bitcoin is seen as a hedge against inflation, especially in light of the expanding U.S. money supply and the capped supply of Bitcoin at 21 million tokens [18].
Billionaire David Tepper Is Selling Nvidia, AMD, and TSMC, and Loading Up On Shares of This Trillion-Dollar Artificial Intelligence (AI) Stock Instead
The Motley Fool· 2025-08-07 07:06
Core Insights - Appaloosa's billionaire chief David Tepper has been a significant seller of AI stocks, particularly Nvidia, AMD, and TSMC, while increasing his position in Broadcom, a trillion-dollar AI stock [1][6][15] Group 1: AI Stock Market Trends - The rise of artificial intelligence (AI) represents a multitrillion-dollar global opportunity, leading to a surge in AI stock prices [3] - Tepper's selling of Nvidia, AMD, and TSMC raises questions about the sustainability of their stock prices amid potential market corrections [9][10] - Historical trends suggest that technology stocks often experience bubbles, indicating a possible overvaluation in the current AI market [10] Group 2: Tepper's Investment Strategy - Tepper's strategy includes significant reductions in his holdings: 4,120,000 shares of Nvidia (93% reduction), 230,000 shares of TSMC (46% reduction), and a complete exit from 1,630,000 shares of AMD [13] - The decision to sell may be driven by profit-taking, as all three companies have seen substantial share price increases over the past three years [9] - Valuation concerns are evident, with Nvidia's price-to-sales (P/S) ratio at 31, suggesting a potentially shaky ground for these stocks [12] Group 3: Broadcom's Position - Broadcom has bucked the trend of Tepper's selling, with Appaloosa acquiring 130,000 shares, highlighting its strong position in AI networking solutions [15][16] - Broadcom's custom AI chips and networking solutions are critical for maximizing compute capacity in AI applications, positioning it favorably in the market [16][17] - The company has diversified revenue streams beyond AI, including wireless chips and cybersecurity solutions, which may provide stability if the AI market faces challenges [20]
10 Reasons to Pass on Nvidia Stock From an Investor of 27 Years Who's Seen This Story Play Out Before
The Motley Fool· 2025-06-19 07:51
Core Viewpoint - Nvidia, a leader in the AI sector, is facing potential vulnerabilities despite its significant market cap growth, with over $3 trillion added since the beginning of 2023, raising concerns about sustainability and competition [2][4]. Group 1: Market Dynamics - Historical trends indicate that major technological advancements often lead to early-stage bubbles that eventually burst, suggesting caution regarding Nvidia's stock [5]. - Many businesses have yet to optimize their AI solutions, indicating that the adoption rate of AI technology may be overestimated, which could negatively impact Nvidia [6]. - Nvidia currently holds a near-monopoly in AI-accelerated data centers, but this dominance may not last as competitors ramp up production [7][8]. Group 2: Competitive Landscape - Internal competition from Nvidia's top clients developing their own AI-GPUs poses a significant threat, as these solutions are often cheaper and occupy valuable data center space [9][10]. - CEO Jensen Huang's aggressive innovation cycle may lead to rapid depreciation of older chips, potentially frustrating customers and affecting upgrade cycles [11][12]. Group 3: Financial Health - Nvidia's gross margin has been declining for four consecutive quarters, indicating that the scarcity of AI-GPUs is diminishing due to increased competition [14][15]. - Export restrictions to China, a key market for Nvidia, are limiting sales opportunities and could have long-term implications for revenue [16][17]. - Tariffs and trade policies may further threaten Nvidia's margins and expansion plans, complicating its market position [19][20]. Group 4: Insider Activity and Valuation - There has been no insider buying in over 54 months, with significant sales by executives, raising concerns about confidence in the company's future [21][22]. - Prominent billionaire investors have been selling Nvidia stock, indicating a lack of confidence among major stakeholders [23][24]. - Nvidia's trailing-12-month price-to-sales ratio of 24 is considered unsustainable compared to historical data, suggesting potential overvaluation [26][27].