From Nasdaq: 2024-06-04 05:06:00

During earnings season amidst the April inflation release, institutions with $100M+ in assets filed Form 13F with the SEC. This filing offers insights into the trading activities of top investors in the previous quarter. Notably, despite AI’s popularity, 8 billionaires sold off shares of Nvidia, casting doubts on the company’s future prospects.

The unloading of Nvidia stock by billionaire investors highlights concerns over the company’s future outlook. Factors like potential AI bubble bursts, waning pricing power, tight regulation, and internal competition have led these investors to question the sustainability of Nvidia’s growth trajectory. This skepticism has driven considerable selling activity around the stock.

While Nvidia faces these challenges, e-commerce giant Amazon has emerged as a favorite among billionaires. Nine billionaires purchased Amazon shares during the first quarter, attracted by the company’s solid cash flow growth trajectory. With Amazon Web Services, subscription services, and advertising segments driving robust cash flow growth, Amazon continues to attract investor interest for its long-term potential.

Overall, Nvidia’s future prospects may face challenges due to various factors that are impacting investor sentiment. On the other hand, Amazon’s consistent cash flow growth across key segments has made it a top choice among billionaire investors, highlighting the importance of diversification and understanding long-term growth drivers in investment decisions.



Read more at Nasdaq: Forget Nvidia: Billionaires Are Selling the Artificial Intelligence (AI) Giant and Piling Into This “Magnificent Seven” Stock Instead