On Monday, July 2nd, the closing price of Nvidia stock rose to $124.30, with a monthly increase of more than 10%. However, recently key insiders from Nvidia reported that wealthy and hedge funds have started to sell Nvidia stocks, as they believe that the soaring stock price has lost its momentum.
According to WhaleWisdom, a hedge fund tracking organization, in the first quarter of this year, more top investors reduced their holdings of Nvidia shares than increased them. 336 hedge funds decreased their holdings of Nvidia shares, which was about 60% more than the number of hedge funds that increased their holdings.
(Source: MSN)
In addition, 207 hedge funds increased their holdings, which was also lower than the 269 hedge funds in the fourth quarter of 2023.
Billionaire investors who sold Nvidia stocks include Ken Griffin of Citadel Investment Company, Israel Englander, founder of investment asset management Millennium Management, and Paul Tudor Jones of Tudor Investment Group.
This sends an important signal to the market that hedge fund managers seem to be taking profits and looking ahead to Nvidia entering a weak state.
The 13F filings of hedge fund managers do not come with comments, but investors can make some educated guesses about why these Wall Street celebrities are selling Nvidia.
One of the most obvious reasons seems to be letting go of part of the profits, especially when considering rumors that the capital gains tax rate of the wealthy may increase. Warren Buffett, the stock god and CEO of Berkshire Hathaway, said that this was one of the reasons why his company sold Apple stocks in the first quarter.
Another reason is that competition is becoming increasingly fierce, with AMD and Intel both launching competitive data center GPUs, and technology companies such as Meta Platforms and Microsoft also developing their own AI chips internally to reduce their dependence on Nvidia.
Billionaire investor Stanley Druckenmiller explained his decision to reduce his holdings of Nvidia shares, stating that his company's earlier understanding of the stock is now recognized by a wider market. In fact, Nvidia's dominant position and rapid growth in the field of artificial intelligence (AI) chips has become obvious. #AI Hype#
Since early May, Nvidia has filed 10 Form 144 documents with the SEC. Regarding Form 144, it is only used when planning to sell 5,000 shares or more or when the total amount exceeds $50,000.
The most watched among them is Huang Renxun, CEO of Nvidia, who sold 120,000 shares of stock on June 13th of this year.
At the same time, Deborah, the COO, and several members of the board of directors also gradually sold off some of their holdings.
But it is worth noting that the shares sold by Huang Renxun were part of his senior executive compensation plan. Specifically, they were restricted stock units (RSUs) and performance stock units (PSUs), which CEOs often sell when allowed.
What is important is that as of March 25th of this year, Huang Renxun still held nearly 93.5 million shares of Nvidia stock. Compared with his total holdings, the recent stocks he sold were only a small amount.