Billionaires Shift Investments from Nvidia to 2 High-Powered AI Stocks

Billionaires are moving their money from Nvidia to Palantir Technologies and Super Micro Computer, two AI stocks that are doing very well and have gained a lot this year.

Nvidia is seen by many investors as the best stock in artificial intelligence (AI) because its chips give the most advanced AI systems, like ChatGPT, Tesla’s and OpenAI’s full self-driving software, the computing power they need to learn.

But during the first quarter, some millionaires from hedge funds sold Nvidia stock and bought shares of Palantir Technologies and Super Micro Computer (NASDAQ: SMCI), two AI stocks that have done very well this year with returns of 59% and 198%, respectively.

In the first quarter, Philippe Laffont of Coatue Management sold 2.9 million shares of Nvidia, which lowered his ownership by 68%.Millionaire investor Israel Englander sold 720,000 Nvidia shares in the first quarter, cutting his holdings by 35%.For Moore Capital Management’s Louis Bacon, selling 2,006 shares of Nvidia in the first quarter cut his holdings by 19%.

Because Millennium Management has easily beaten the S&P 500 over the last three years and is the second-best performing hedge fund of all time based on net gains since start, Israel Englander’s trades stand out.