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Investment funds with more than $100 million in assets must notify the SEC of any changes to their portfolios.
The reports, known as 13-F filings, are filed only dating back to the end of the previous quarter and while they don’t include a full list of holdings or potential bets on specific securities, they offer a glimpse into the strategies of some of the world’s largest investors.
Major companies cut NVIDIA stakes
Three major firms, including David Tepper’s Appaloosa Management, appear to have significantly reduced their holdings of Nvidia in the last quarter, after it sold about 3.7 million shares, or 84.4%, in the three months to June.
The stock currently makes up about 1.4% of his $17.3 billion portfolio.
Stanley Druckenmiller’s Duquesne Family Office sold about 1.5 million Nvidia shares, about 88% of its holding, while activist investor Elliott Management sold a small chunk of 50,000 shares of the chipmaker.
Soros Fund Management, an investment firm founded by billionaire investor George Soros, also exited the company after selling about 217,000 shares of Nvidia stock.
Related: Top analyst puts Nvidia stock on focus list after $500 million drop
On the buy side, State Street bought $76.6 million worth of NVIDIA shares, making the stock its second-largest holding in its $2.29 trillion portfolio after Microsoft. (Microsoft) .
Meanwhile, Vanguard added $11.4 million to its Nvidia shares, making it its third-largest holding, and BlackRock bought $16.9 million in net purchases, making Nvidia its second-largest holding (after Microsoft) in its massive $4.4 trillion portfolio.
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Focus on Q2 earnings
Nvidia is scheduled to report its long-awaited second-quarter results on August 28, and analysts expect the company’s bottom line to rise by about 137% to 64 cents per share on revenue that will more than double from the same period last year to $28.55 billion.
But investors will be keeping an eye on reports that design flaws could delay deliveries of the company’s newly launched Blackwell processor, which aims to be faster, cheaper and more efficient than its H100 “hopper” predecessor.
Analysts had expected Blackwell to start bringing in revenue for Nvidia starting in the third quarter and have a presence in customer data centers around the world by the end of the year.
Related: Nvidia shares plummet in tech slump amid questions over key chips
Demand for AI and Nvidia’s dominant market share are expected to help the group’s data center revenue rise to $150 billion next year, driven mainly by the launch of Blackwell this year.
Some analysts are also beginning to question the pace of AI spending by hyperscalers like Microsoft, Metaplatforms and others. (Meta) ,Amazon (Amazon) Google’s parent company Alphabet (Google) And that has resulted in increased demand for the high-end chips and processors that Nvidia produces.
Indeed, hyperscalers — the big providers of massive data centers and cloud services — plan to spend roughly $500 billion over the next two years building out massive infrastructure to harness vast data sets to improve sales on everything from drive-through dining to the most complex pharmaceutical tests, according to Barclays estimates.
Other AI strains:
A recent report from S&P Global predicts that AI spending will grow by more than 20% by 2028, accounting for about 14% of total IT spending at that point, more than double the 2023 total.
“Cloud giants are investing heavily in AI despite uncertain monetization timelines, with combined capital spending by Microsoft, Alphabet and Meta up 60% year-over-year,” said Christian Frank, technology director at S&P Global.
Nvidia shares were last up 0.65% in pre-market trading to open at $118.85 per share.
Related: Veteran fund manager predicts the stock world is in trouble
