Top-rated fund managers are divided on whether to buy or sell Nvidia, which has rallied 35% this year and hit a $4.4 trillion market cap. Seven managers added to their positions, including Polen Growth Fund and Neuberger Berman Multi-Cap Opportunities Fund, while seven others, including GQG Partners US Select Quality Equity Fund and Brown Advisory Sustainable Growth Fund, sold the stock.

Nvidia, the semiconductor giant, has seen a 35% rise this year, reaching a market cap of $4.4 trillion. The company has benefited greatly from investments in AI data centers, with a 1,290% gain in the past five years. Nvidia now represents 7% of the Morningstar US Large-Mid Cap Index, impacting funds’ returns.

In a closer look at top-rated fund managers’ portfolios, seven have added to their Nvidia stakes, while seven others have reduced them. For example, GQG Partners US Select Quality Equity Fund sold its entire stake, while others like Principal Blue Chip Fund increased their holdings by 152%.

Of the 15 top-rated stock pickers owning Nvidia, seven have recently bought the stock, with the Neuberger Berman Multi-Cap Opportunity Fund and Polen Growth Fund making new positions. The Polen fund recognized its earlier underweighting of Nvidia as a detractor and aims to benefit from the AI chip boom.

On the flip side, seven top fund managers have reduced their Nvidia holdings, with GQG Partners US Select Quality Equity Fund completely selling out. The Brown Advisory Sustainable Growth Fund and Parnassus Core Equity Fund have significantly cut their positions due to concerns about the fever pitch in the AI semiconductor narrative. Top fund managers are split on whether to buy or sell Nvidia, which has seen a 35% increase this year with a $4.4 trillion market cap. Some top-rated stock pickers have added to their positions, while others have sold, including GQG Partners US Select Quality Equity Fund. T. Rowe Price Growth Stock Fund trimmed its Nvidia exposure but remains constructive on the chipmaker’s future growth prospects. However, GQG Partners US Select Quality Equity Fund has zeroed out its position in Nvidia, believing that the demand for chips may have already been met, leading to distributors selling them at half price.

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Key Takeaways
Nvidia’s stock has surged 35% this year, reaching a market cap of $4.4 trillion. Top-rated managers are split on whether to buy or sell the stock.
Out of 15 top-rated stock pickers holding Nvidia, seven have increased their positions, such as Polen Growth Fund and Neuberger Berman Multi-Cap Opportunities Fund.
Conversely, seven managers have recently sold Nvidia, including GQG Partners US Select Quality Equity Fund and Brown Advisory Sustainable Growth Fund.: Buy or Sell Nvidia? Top-Rated Fund Managers Can’t Agree