Billionaires Are Selling Nvidia Stock and Buying 1 Supercharged Index Fund for the Artificial Intelligence (AI) Boom
Nvidia has been a phenomenal long-term investment, with shares surging 2,630% during the last five years. Yet, several hedge fund managers (whose investing bona fides include billion-dollar net worths) trimmed their positions in Nvidia during the first quarter, while reallocating funds to the Invesco QQQ Trust (NASDAQ: QQQ), a supercharged index fund that tracks the Nasdaq-100.
Cohen, Griffin, and Schonfeld ranked among the most successful hedge fund managers during the first half of 2024, according to Business Insider. But readers should not interpret their trades to mean Nvidia is a bad investment. All three billionaires still own shares of the semiconductor company, which suggests some degree of confidence.
Instead, the lesson here deals with portfolio diversification. Grand View Research estimates artificial intelligence (AI) spending will approach $2 trillion by 2030, and analysts at Swiss investment bank UBS believe "AI will be the most profound innovation and one of the largest investment opportunities in human history."
Source Fool.com
Invesco Ltd. Stock
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