Billionaire money manager have Nvidia long before being published by his overall years-and her feeling could not be clearer

Data is not difficult to get on Wall Street. Between the winning season of six weeks per quarter, in which the vast majority of S&P 500 Companies present their operational results and economic data releases of the US government, investors rarely fight for catalysts who can move the wider market.

But nothing more was expected from these market -moving data dumps than Nvidia (NVDA 3.67%))) Lift the bonnet on the operational results of the fourth quarter and in the whole year (Nvidia's Fiscal 2025 on January 26, 2025) after the final bell on February 26.

Nvidia has been the face of artificial intelligence (AI) revolution for two years. The GPU architecture of the graphics processing unit (H100) of the company (H100) and the Blackwell GPU architecture of the next generation are the undisputed top options in the data centers with Enterprise AI accelerated and enable AI software and systems to make decisions with split-second seconds.

Although investors should have a good pearl about what Nvidia can expect after the publication of the operating results, we have already seen a number of billionaires money managers on February 25 -and their mood in relation to the AI ​​-Darling from Wall Street could not be clearer.

The prominent billionaire assets of Wall Street speak volumes with their actions

In addition to listed companies that report their operational results quarterly, institutional investors with at least $ 100 million in managed assets must be obliged to submit the form 13f at the Securities and Exchange Commission after 45 calendar days after the end until one quarter.

A 13f offers a snapshot with which investors can determine which shares have bought and sold the best -known money managers from Wall Street. Although these submissions are stale for active hedge funds, you can still indicate investors in the shares, industries, sectors and trends that have the full attention of the top animal assets.

As you can imagine, Nvidia's historical advancement, which was bound to the AI ​​revolution, made it a popular company for billionaire investors to keep an eye. Based on 13F registrations in the past two years, billionaire money managers have been decisive sellers of the Nvidia shares. Note: In June 2024, all subsequent figures were adapted for the historical 10-towards 1 forward share from NVIDIA.

• Philippe Laffont from Coatue Management: Since the first quarter of 2023, 39,795,532 shares of NVIDIA share, which corresponds to a reduction of 80%.
• David Tepper from Appaloosa Management: 9,569,999 stocks have sold since the third quarter of 2023, which corresponds to a 93% haircut.
• Stanley Daringenmiller from the Duquesne family office: Since the second quarter of 2023, the entirety of the 9,500,750 share of his fund.
• Stephen Mandel by Lone Pine Capital: Since the second quarter of 2023, the entire participation of his fund from 6,416,490 Nvidia shares.

The “Why?” Behind this persistent sales activity can probably be explained by five factors.

Image source: Getty Images.

Billionaire investors sell nvidia shallor fist

The most logical of all reasons for these four billionaire investors to ring the register is an easy profit. These are relatively active fund managers who probably realize that the market value of Nvidia is regularly against public companies by around 3 trillion dollars. The concern is that this sale is much more than just simple profit operation.

A second option is that billionaire fund managers were concerned that an inevitable increase in the competition for Nvidia. Interestingly, internal competitive pressure could be the greater concern, while direct competitors tend to attract the greatest attention.

Many of Nvidia's top customers Develop their own AI chips with the aim of using this hardware in their AI acceleration stores. Even if this AI GPUS does not correspond to the computing speed with the chips from Nvidia, they are significantly cheaper and not covered. In other words, NVIDIA is a serious risk of losing valuable data center real estate with its top customers and weakening its price performance over time.

The regulatory environment for AI chips and related equipment marks a third potential catalyst for the sale of sales trains for billionaire money managers. From 2022 to 2024, the Joe Biden administration captured the exports of high-ranking AI chips to China. Donald Trump's administration seems to have the intention of protecting America from the world economy in the world. This means that billions of dollars of the quarterly turnover from Nvidia to China are now at risk.

The historical precedent is the fourth concern that Laffont, Tepper, Printer and Almond may have encouraged to go to the outcome. Every Next-Big-Thing technology has navigated in three decades at the beginning of its existence through a bubble born event. This reflects the investors who consistently overestimate the adoption rate and/or the benefits of a new innovation. If the story would rhyme and the AI ​​bubble burst, no company would be harder than Nvidia.

The fifth catalyst, who may be responsible for the aggressive sales activity by a billionaire fund manager, is the evaluation of Nvidia. While it is not too expensive due to the process of the process, the Price-to-Sales ratio from Nvidia reached a high of more than 42 companies last summer that were located on the first big theater in the first three decades in the respective P/S conditions of around 30 to 40.

Although all the eyes have been focused on NVIDIA operating results for weeks, billionaire investors spoke to their wallets long before the company's full year was focused on.