Members of Congress and billionaires are selling Nvidia, buying AMD and Microsoft for AI growth

From Nasdaq: 2024-05-06 14:10:00

Nvidia’s stock price has surged 425% since ChatGPT’s launch on November 30, 2022, driven by the demand for AI applications. However, some influential members of Congress and hedge fund billionaires are selling Nvidia shares, indicating a belief that the stock may be overvalued. Smart money is shifting to AI stocks like AMD and Microsoft.

Members of Congress and billionaires are selling Nvidia shares while buying into AMD and Microsoft, all companies heavily involved in AI. Nvidia’s stock has seen significant selling pressure due to concerns about valuation, while AMD and Microsoft are seen as potential growth opportunities in the AI space. Nvidia’s high valuation and customer concentration are potential risks.

AMD has struggled against Nvidia in the data center GPU market, but recent product releases suggest potential growth. Microsoft, on the other hand, has seen strong demand for its AI services and Cloud computing division, Azure. Both companies have attracted investments from Congress members and prominent investors as they position themselves as leaders in the AI industry.

Investors are advised to consider other AI stocks like AMD and Microsoft as potential growth opportunities amid concerns about Nvidia’s valuation and future growth prospects. Stocks may not always perform as expected, making diversification important. Smart money investors are focusing on companies with strong growth potential in the AI sector.



Read more at Nasdaq: Forget Nvidia: Smart Money Is Selling It and Buying These 2 Roaring Artificial Intelligence (AI) Stocks Instead