Since the start of 2023, no trend has been hotter on Wall Street than the arrival of artificial intelligence (AI).
With AI, software and systems are used in place of humans to oversee or undertake assigned tasks. The seemingly limitless ceiling attached to the AI revolution traces back to the ability of software and systems to learn without human intervention and evolve over time. The capacity to become more proficient at tasks, or perhaps learn new skills entirely, gives this technology utility in almost every sector and industry of the global economy.
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Although AI is rivaling the internet in terms of game-changing potential for corporate America, optimism isn’t universal among Wall Street’s brightest (and richest) investors.
Based on Form 13F filings with the Securities and Exchange Commission from the March-ended quarter — a 13F allows investors to see what top money managers have been buying and selling — more than a half-dozen prominent billionaires were sellers of Wall Street’s AI darling Nvidia (NASDAQ: NVDA). At the same time, these select billionaire investors were piling into three other hypergrowth AI stocks.
Eight billionaire investors meaningfully pared down their stakes in Nvidia
In short order, Nvidia has become the go-to supplier of AI-graphics processing units (GPUs) used in enterprise data centers. The semiconductor analysts at TechInsights estimate that Nvidia was responsible for all but 90,000 of the 3.85 million GPUs shipped to enterprise data centers in 2023.
But despite having a monopoly on the hardware powering split-second decision-making in AI-accelerated data centers, eight billionaire money managers — nine, if you include the recently passed Jim Simons of Renaissance Technologies — were sellers of Nvidia stock during the first quarter, including (total shares sold in parenthesis adjusted for Nvidia’s 10-for-1 stock split in June):
Philippe Laffont of Coatue Management (29,370,600 shares)
Ken Griffin of Citadel Advisors (24,627,160 shares)
Israel Englander of Millennium Management (7,200,040 shares)
Stanley…
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