Billionaire Philippe Laffont Has a New No. 1 AI Stock After Selling Shares of Nvidia and Meta Platforms

There's thing much invaluable connected Wall Street than data. One week ago, connected Feb. 17, organization investors with astatine slightest $100 cardinal successful assets nether absorption filed Form 13F with the Securities and Exchange Commission. A 13F offers investors a snapshot of the stocks Wall Street's smartest wealth managers purchased and sold successful the latest quarter.

Investors often wage adjacent attraction to 13F filings from billionaire investors, including Philippe Laffont of Coatue Management. Laffont has an affinity for companies astatine the forefront of game-changing technologies, specified arsenic artificial quality (AI). But he's not ever a purchaser of AI stocks, arsenic the selling enactment successful Nvidia (NASDAQ: NVDA) and Meta Platforms (NASDAQ: META) during the 4th fourth showed.

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Although Nvidia oregon Meta person been Coatue's apical holding successful 10 of the past 12 quarters, there's a caller No. 1 AI banal successful Laffont's $40 cardinal portfolio.

According to Coatue Management's 13F, its billionaire brag sold 667,405 shares of Nvidia and 253,768 shares of Meta during the 4th quarter.

But paring down these 2 positions has been a communal theme. Laffont's involvement successful Meta has been reduced by 53% (4,279,854 shares) since March 30, 2023, portion his fund's presumption successful Nvidia has been slashed by 82% (40,598,682 split-adjusted shares) implicit the aforesaid period.

While some companies connection well-defined competitory advantages -- Nvidia's graphics processing units (GPUs) supply superior compute capabilities and Meta's societal media assets are unmatched -- their respective shares person delivered outsize returns. Since the commencement of 2023, shares of Nvidia and Meta person skyrocketed by astir 1,200% and 445%, respectively. Laffont has demonstrated a willingness to currency successful his chips erstwhile presented with the opportunity.

It's besides imaginable that Coatue's billionaire capitalist is disquieted astir a imaginable AI bubble. Every next-big-thing inclination implicit the past 3 decades has endured an aboriginal signifier bubble-bursting event, triggered by investors grossly overestimating the adoption and/or optimization of a game-changing technology. Although request for AI infrastructure is robust, it'll apt instrumentality years earlier companies optimize AI solutions to boost their bottommost lines.