Nvidia Stock vs. Amazon Stock: Billionaire Ken Griffin Buys One and Sells the Other

Date:

Ken Griffin is the founder and CEO of Citadel, the most profitable hedge fund in history as measured by net gains since inception, according to LCH Investments. That makes him an excellent case study, and investors can track which stocks Citadel buys and sells using Forms 13F filed quarterly with the SEC.

Interestingly, while Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN) play important roles in the burgeoning artificial intelligence economy, Griffin bought one stock and sold the other throughout the first half of 2024, as detailed below.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

  • In the first quarter, Griffin sold 2.4 million shares of Nvidia, reducing his stake by 68%. He also bought 352,453 shares of Amazon, increasing his position by 6%.

  • In the second quarter, Griffin sold 9.2 million shares of Nvidia, reducing his stake by 79%. He also bought 1.1 million shares of Amazon, increasing his position by 17%.

Importantly, excluding options contracts and index funds, Amazon was the largest position in Citadel’s portfolio as June 30. So, Griffin clearly has a great deal of confidence in the company. Here’s what investors should know.

Nvidia graphics processing units (GPUs) are the gold standard in data center accelerators, particularly where artificial intelligence (AI) is concerned. Indeed, Forrester Research recently wrote, “Without Nvidia’s GPUs, modern AI wouldn’t be possible.” But the company has a durable competitive moat because it pairs superior GPUs with an unparalleled ecosystem of software development tools.

To elaborate, Nvidia in 2006 introduced CUDA, a programming model that enables developers to write GPU-accelerated applications. The ecosystem has since expanded to include over 400 code libraries and 600 pretrained models that simplify software development across domains ranging from data science and machine learning to scientific simulation and augmented reality.

More recently, Nvidia has integrated CUDA into subscription software and cloud services. Its AI Enterprise platform lets software developers build, deploy, and manage AI applications that span recommender systems to autonomous robots. Likewise, DGX Cloud is a full-stack service that brings together the supercomputing infrastructure and software businesses need for AI development workflows.

Nvidia looked strong in the second quarter of fiscal 2025, which ended in July 2024. Sales increased 122% to $30 billion and non-GAAP net income jumped 152% to $0.68 per dilute share. Investors have good reason to believe that momentum will continue. The production ramp of Nvidia’s next-generation Blackwell GPU started in the current quarter, and demand is so strong that the chips are already sold out for 12 months.

Share post:

Popular

More like this
Related

Real Madrid General Director tells La Liga to cut funding for women’s football

Real Madrid and La Liga are never short of...

Centre Releases World Bank Report On Jobs In 6 States. Here’s What It Says – News18

Last Updated:November 22, 2024, 19:58 ISTThe study is in...

Super Micro Investors Whiplashed as Tech Firm Fights For Listing

(Bloomberg) -- A roller-coaster ride...

NASCAR: Denny Hamlin to have new crew chief for 2025 Cup Series season

Denny Hamlin will have a new crew chief as...