Semiconductor Nvidia (NASDAQ: NVDA) has generated significant shareholder value in recent periods. The stock has skyrocketed by 517% since the start of 2023 due to increased interest in artificial intelligence (AI). However, a number of affluent hedge fund managers scaled back their holdings in Nvidia during the final quarter while procuring other AI equities.
Millennium Management’s Israel Englander divested 1.7 million Nvidia shares, thereby lowering his ownership by 45%.
Point72 Asset Management’s Steven Cohen sold 1.1 million Nvidia shares, decreasing his stake by 66%.
Appaloosa’s David Tepper offloaded 235,000 Nvidia shares, reducing his holding by 23%.
These trio of affluent individuals share two pivotal characteristics. They are listed among the 15 most prosperous hedge fund managers historically, and have outperformed the S&P 500 (SNPINDEX: ^GSPC) over the last three years. These traits add to their credibility.
Keeping this in view, all three hedge fund managers acquired shares of Amazon (NASDAQ: AMZN) in the final quarter. Englander and Tepper also initiated positions in HubSpot (NYSE: HUBS). These corporations have already gained a solid foothold in specific AI markets — Amazon in cloud AI developer services, and HubSpot in AI sales assistant software — but both are advancing their AI product development which could drive further shareholder value.
1. Amazon
Amazon boasts three key growth drivers in online retail, digital marketing, and cloud services, and is well-positioned in all three sectors. Namely, Amazon operates the most-visited e-commerce platform globally, propelling it to the top spot as the largest retail advertiser worldwide. Additionally, Amazon Web Services (AWS) leads in cloud infrastructure and platform services, as well as in various subcategories, including artificial intelligence (AI) developer services.
Amazon is leveraging AI to enhance its position in all three sectors. It recently unveiled Rufus, a generative AI shopping assistant, and utilizes machine learning to optimize inventory and logistics routes. Amazon also introduced a generative AI tool for marketing content and consistently refines its machine learning models to enhance…
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