2024-08-01 04:44:00 ET
Nvidia has been one of hottest stocks on Wall Street for the better part of two years. But professional money managers have become increasingly cautious about holding large positions in the chipmaker as shares have skyrocketed. Compared to its weight in the S&P 500 (SNPINDEX: ^GSPC) , Nvidia was the second-most under-owned big tech stock across institutional portfolios in the first quarter, according to Morgan Stanley .
The hedge fund billionaires below contributed to that trend by selling shares of Nvidia and buying shares of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) or ServiceNow (NYSE: NOW) during the quarter.
Importantly, every billionaire mentioned above still has exposure to Nvidia, so investors should not interpret their trades to mean Nvidia is a bad investment. However, Alphabet and ServiceNow produced turbocharged returns of 174% and 179%, respectively, over the last five years. So both stocks warrant further consideration.
For further details see:
Billionaires Are Selling Nvidia Stock and Buying 2 Turbocharged Artificial Intelligence (AI) Stocks Instead