Billionaires Griffin and Tepper missed out on potential profits by selling Nvidia stock in Q1.

From Nasdaq: 2024-06-08 05:50:00

Billionaire investors Ken Griffin and David Tepper made questionable decisions to sell off hedge fund positions in Nvidia in the first quarter of 2024. With Nvidia stock soaring 135% year to date, estimates suggest Griffin could have missed out on $539.5 million to $1.75 billion in profits, and Tepper, $76.2 million to $247.4 million.

While the exact amounts left on the table remain unknown, Griffin and Tepper’s sales of Nvidia stock in Q1 indicate missed opportunities. Nvidia’s stock has surged 29% since the end of the quarter, with potential profits of $539.5 million to $1.75 billion for Griffin’s Citadel hedge fund and $76.2 million to $247.4 million for Tepper’s Appaloosa hedge fund.

With Nvidia stock surging 150% from its Q1 low and 23% from its high, estimates suggest Griffin and Tepper left substantial profits on the table. Griffin’s Citadel could have made between $539.5 million and $1.75 billion, while Tepper’s Appaloosa, $76.2 million to $247.4 million.

Investors are weighing the risks and rewards of Nvidia stock, given fierce competition in the AI chip market and the stock’s growth prospects. Despite competition, Nvidia is ahead of rivals, launching new powerful chips and maintaining a strong innovation cycle under CEO Jensen Huang.

While some caution against investing in Nvidia due to competition and stock price growth, the company remains a market leader with solid innovation. Nvidia is set to continue its success, potentially offering strong returns for investors in the future.



Read more at Nasdaq: How Much Money Did Billionaires Ken Griffin and David Tepper Leave on the Table by Selling Nvidia Stock in Q1?