Receive free U.S. and Canadian company updates
we will send you myFT Daily Digest Email summary of the latest information U.S. and Canadian companies Every morning there is news.
Nvidia, maker of the shovels known in the AI gold rush, reports earnings tomorrow.As the industry has experienced, there will be plenty of hedge funds praying for another strong quarter a lot of ride on it.
Goldman Sachs’ latest “Hedge Fund Trend Monitor” is out, and it appears that hedge funds have been ramping up their bets on the chipmaker, taking their overall stake in Nvidia to 1.9% at the end of June.
Goldman Sachs generated this data by searching the regulatory filings of 744 hedge funds with a combined $2.4 trillion in holdings, supplemented with some additional detail from its own (industry-leading) prime brokerage service.
Given Nvidia’s market capitalization of $1.07 trillion, hedge funds’ 1.9% stake equates to a total position of more than $20 billion.Among the more prominent nvidia lovers Including David Tepper’s Appaloosa Management, Dan Loeb’s Third Point and Soros Fund Management — plus what appears to be an entire herd of tiger cubs (naturally)
Looking purely at the number of hedge funds holding Nvidia, it ranks only fifth, behind Microsoft, Amazon, Meta and Alphabet. But as you can see from the table above, it’s the most overweight stock this year (which probably contributed quite a bit to Nvidia’s nearly 200% gain this year).
(General sidenote: Let’s be honest, classic Platonic idealsHedge Fund Hotel‘It really should be a smaller company with more hedge fund ownership, something like this Valente earlier. )
Nvidia expanded its weighting in Goldman Sachs’ “Hedge Fund VIP” index of most popular holdings. Pixel time was 2.86%, up from 2.54% when we wrote this in July.
Nvidia’s ownership is far from extreme. Hedge funds, for example, hold a 3.5% stake in the shrunken Meta, according to Goldman Sachs. But hedge funds have scaled back bets on nearly every other AI-related stock, even as they (as a sector) doubled down on Nvidia.
Therefore, there are many masters of the universe whose entire lives may depend on the success of a single stock. Wednesday It will be fun.
Svlook
