In the third quarter, billionaire Philippe Laffont sold shares of Nvidia and purchased stock in Meta Platforms, making Meta the largest position in his portfolio. Nvidia’s market share in China is declining due to export restrictions, while Meta’s aggressive spending on AI has worried investors, although the recent sell-off may be an overreaction.

Nvidia, known for its GPUs and AI accelerators, dominates the data center GPU market with over 90% share. Despite export restrictions in China, Nvidia’s full-stack approach and strong performance keep it competitive. Laffont trimmed his Nvidia position in Q3, but it remains a significant part of his portfolio.

Meta Platforms owns top social media networks and invests heavily in AI tools, leading to increased user engagement and ad conversion rates. Despite concerns about increased AI spending, Meta’s financial results have been positive. Wall Street forecasts 16% annual earnings growth, making the stock valuation reasonable for investors.

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Read more at Nasdaq: Billionaire Philippe Laffont Sells Nvidia Stock and Buys a Mega-Cap AI Stock Down 23% From Its High