Third Point’s Investment Moves in Q4 2022
During the fourth quarter of 2022, investor Daniel Loeb’s hedge fund, Third Point, reduced its holdings in Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) by 23% and 16%, respectively, though these stocks remain the third and fourth largest positions in the portfolio, each over 6% of assets. In contrast, Third Point increased its stake in Nvidia (NASDAQ: NVDA), which has surged more than 1,200% since 2023, highlighting increasing confidence in the company.
Nvidia recently reported a revenue of $68.1 billion for the quarter, up 73% year-over-year, surpassing its previous expectation of $65 billion. The AI sector’s demand for Nvidia’s graphics processing units is projected to drive significant growth, with data center capital expenditures expected to reach $650 billion this year. This positions Nvidia as a compelling buy given its current valuation at 25 times forward earnings, among the lowest in three years.
