Billionaire Philippe Laffont Dumped Some Nvidia (NVDA) Stock in Q1


  • Tech giant Nvidia (NVDA) saw its shares rise despite some less-than-flattering news.
  • Coatue Management is in the spotlight for significantly slashing its position in NVDA stock.
  • Interestingly, it’s not the only major stakeholder rushing for the exits.
NVDA stock - Billionaire Philippe Laffont Dumped Some Nvidia (NVDA) Stock in Q1

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As per usual throughout the year so far, technology juggernaut Nvidia (NASDAQ:NVDA) captured the spotlight. This time, despite less-than-flattering news, NVDA stock gained stoutly during the midweek session. However, clouding the narrative is a rising concern that major stakeholders are dumping shares of the graphics processing giant.

One particular entity that has raised eyebrows is Coatue Management, founded and run by Philippe Laffont. According to its 13F filings with the U.S. Securities and Exchange Commission (SEC), at the end of the fourth quarter of last year, Coatue held 4.32 million shares of NVDA stock. Fast forward to Q1 of this year, and the position shrunk to roughly 1.39 million shares.

Even more glaring, in Q4, NVDA stock represented the tech-centric investment fund’s top holding, with a market value of $2.14 billion. At the time, Nvidia represented just under 9% of Coatue’s portfolio. However, in Q1, the holding dropped to $1.25 billion or 4.91% of the portfolio. Subsequently, Meta Platforms (NASDAQ:META) took over the top spot with an 8.22% allocation.

With 13F filings due today, many investors are anxious to see if other major players are following suit.

Coatue Not the Only One Slashing NVDA Stock

To be sure, stakeholders of NVDA stock currently have little reason to fret on paper. Between March and late April of this year, circumstances got shaky. However, the tech firm found its footing, with investors bidding shares up. Right now, they’ve nearly doubled in market value.

At the same time, tension is starting to rise. Although NVDA stock has been a blisteringly strong performer, concerns exist about the underlying company sustaining its stratospheric pace. The next litmus test comes on May 22, when the company is scheduled to release its fiscal 2025 first-quarter earnings report.

Ahead of the disclosure, several investors have decided to trim their exposure to NVDA stock. According to TipRanks’ Hedge Fund Confidence Signal, NVDA rates as “Very Negative.” That’s because these institutional players have been reducing their allocation in the stock since Q1 2023.

Further, TipRanks reveals that insider sentiment is also extremely pessimistic based on the number of informative sells. That’s corroborated by data from Gurufocus, which notes that insider transactions have been exclusively on the sell side of the spectrum over the past three years.

It’s also worth pointing out that billionaire investor Stanley Druckenmiller also slashed his exposure to NVDA stock earlier this year. So, Caotue is definitely not alone in its pensive posture.

Why It Matters

Presently, Wall Street analysts rate NVDA stock as a consensus strong buy. This assessment breaks down as 40 buys, two holds and most importantly no sells. However, the average price target comes in at $1,021.27, implying around 8% upside potential.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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