Billionaires Ken Griffin and Steven Cohen triple their stake in Nvidia and sell Apple shares.

From Nasdaq: 2025-01-03 03:35:00

In the third quarter, hedge fund managers Ken Griffin and Steven Cohen made significant moves with Nvidia and Apple stocks. Griffin tripled his stake in Nvidia while selling 90% of his Apple shares. Cohen increased his Nvidia stake by 75% and completely exited his Apple position, making them sources of inspiration for investors.

Nvidia, known for its GPUs, dominates the data center GPU market and is a leader in AI computing. Despite an 800% stock increase in the last two years, Nvidia’s 52 times earnings multiple is reasonable. Wall Street predicts 38% annual earnings growth over the next three years, making it a solid long-term investment.

Apple’s brand authority and premium devices give it a strong market presence. However, its stock has doubled in two years due to multiple expansion, not earnings growth. With a 42 times earnings multiple and expected 10% annual earnings growth, Apple appears overvalued. Prospective investors should look elsewhere, while current shareholders should consider reducing their positions.

Investors contemplating Nvidia should note that it wasn’t among the Motley Fool’s 10 best stock picks. The Stock Advisor service, with a track record of outperforming the S&P 500 since 2002, provides guidance on portfolio building and offers two new stock picks monthly. While Nvidia wasn’t on the list in 2005, the service still delivered exceptional returns.



Read more at Nasdaq: Nvidia Stock vs. Apple Stock: Billionaires Buy One and Sell the Other Ahead of 2025