Since the advent of the internet in the mid-1990s, investors have pretty much always had a next-big-thing innovation, technology, or trend to captivate their attention. However, no addressable market has seemingly loomed larger since the arrival of the internet than the current rise of artificial intelligence (AI).
What makes AI so special is the ability for software and systems to learn and evolve over time without human intervention. This means AI-driven software and systems can become more proficient at assigned tasks, as well as grow to learn new skills. On paper, this gives artificial intelligence utility in almost every sector and industry around the globe.
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The massive addressable market associated with AI — an estimated $15.7 trillion lift to the global economy by 2030, according to the analysts at PwC — isn’t lost on Wall Street’s top investment minds. However, quarterly Form 13F filings with the Securities and Exchange Commission show that billionaire money managers have mixed feelings about the most-popular AI stocks.
In the June-ended quarter, more than a half-dozen billionaire investors were active sellers of the “brains” behind AI-accelerated data centers. But interestingly enough, numerous billionaire asset managers were avid buyers of two other key AI players that have announced or completed a stock split this year.
Data-center hardware kingpins Nvidia and AMD were shown to the door
Although enterprise demand for the graphics processing units (GPUs) that power generative AI solutions, train large language models, and oversee split-second decision-making for AI-driven software and systems, has been off the charts, billionaires haven’t been afraid to ring the register and take profits on the two most-prominent AI-GPU developers: Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD).
The June-ended quarter marked the third consecutive quarter that more than a half-dozen billionaires were sellers of Nvidia’s stock. The seven well-known sellers in the latest quarter include (total shares sold in parenthesis):
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