Nvidia’s Stock Attracts Hedge Funds in Q4, Filings Reveal
Recent filings have shown that well-known hedge funds delved into Nvidia’s shares in the final quarter of last year. This move potentially positions them to benefit from the significant surge of nearly 50% that the stock has witnessed in 2024 so far.
Nvidia has emerged as a major beneficiary of the technology sector’s push towards incorporating artificial intelligence into various products and services. This surge in interest surrounding the new technology propelled the stock to soar by almost 240% in the previous year.
Surpassing Alphabet, Nvidia has now claimed the spot of the third most valuable company in the U.S. with a staggering market capitalization of $1.78 trillion.
Funds Increasing Stakes
Notably, Rokos Capital Management initiated a new stake in Nvidia, acquiring over 254,000 shares worth more than $126 million by the end of December. Bridgewater Associates, founded by billionaire Ray Dalio, ramped up its stake in Nvidia by 458%, holding more than 268,000 shares valued at $133 million by the year-end.
Arrowstreet Capital followed suit by adding 3.9 million shares to its existing position, accumulating a total worth of $2.1 billion.
Funds Reducing Positions
Conversely, some funds opted to reduce or exit their Nvidia positions. Echo Street Capital Management, led by Greg Poole, liquidated all of its over 355,000 shares. D1 Capital Partners and Discovery Capital Management also trimmed their Nvidia holdings significantly.
These moves were disclosed through 13F filings, providing a retrospective view of hedge fund and institutional investor portfolios. While these filings do not offer insights into current holdings or short positions, they shed light on the strategies of typically secretive funds.
Future Outlook
Nvidia is slated to announce its quarterly earnings on Feb. 21, with analysts predicting a substantial increase in the company’s revenue for the fiscal quarter ending in January. Projections indicate a revenue surge to $20.37 billion, driven by the demand for Nvidia’s top-tier AI chips.
Additionally, analysts forecast a more than 400% surge in adjusted net profit to $11.38 billion.
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