Billionaires Are Selling Nvidia, Buying These Two Great Artificial Intelligence (AI) Stocks Instead

Nvidia (NASDAQ: NVDA) has been one of the best-performing stocks of the past few years, adding literally trillions of dollars in value to its shareholders’ portfolios. Several large hedge fund managers were among those investors who made a lot of money investing early in Nvidia. But now they’re starting to take their chips off the table and place bets on a few other incredible companies. artificial intelligence (AI) actions.

Some hedge fund managers selling investments in Nvidia include:

• Stanley Druckenmiller: Sold 71% (441,551) of his family office shares and 100% (4,895) of his Nvidia call options.

• Israel Englander: Sold 35% (720,004) of Millennium Management shares and 31% (6,910) of its call options. He maintains a large position in Nvidia put options, which give him the right to sell the stock at a certain price.

• Chris Rokos: Sold 41% (105,453) of his hedge fund shares.

• Philippe Laffont: sold 68% (2,937,060) of Coatue Management’s shares.

There are many other examples of massive selling by institutional investors. After the meteoric rise in Nvidia’s stock price, it would make sense for them to at least reduce their stake. However, average investors should be more interested in what large hedge fund managers are currently buying.

Here are two great AI stocks billionaires are buying while selling Nvidia.

1. Microsoft

Microsoft (NASDAQ: MSFT) jumped to the forefront of the AI ​​space when it added $10 billion to its investment in generative AI leader OpenAI in early 2023. Despite its position as one of the world’s most valuable companies before the rise of AI, artificial intelligence is proving to be a substantial growth area for the tech company.

Several billionaire money managers saw an opportunity to buy more Microsoft shares in the first quarter, including:

• Ole Andreas Halvorsen: Bought 1,596,887 shares, re-establishing a position in the stock for his Viking Global Investors fund.

• Steven Cohen: Bought 566,749 shares, doubling Point72’s stake in the stock. He also sold options positions, including 1,844 put options.

• Chris Rokos: Bought 274,232 shares, increasing his hedge fund’s stake by 172% from the fourth quarter.

Microsoft’s flagship AI product is Azure AI, which provides cloud solutions for AI developers looking to leverage existing base models to deploy new AI-based software solutions. The company grew its Azure AI customer base by 60% year over year in its most recent quarter, and average spend per customer is also increasing.

Microsoft is investing heavily in expanding its data center capabilities. But management has said it will take some time to get everything up and running. As a result, the company expects Azure revenue to accelerate in the second half of fiscal 2025. That’s no small feat considering it’s already the fastest-growing hyperscale cloud provider today.

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