Hedge Funds Shift Gears: Nvidia to Palantir
Billionaires Israel Englander and Chris Rokos led hedge funds that sold shares of Nvidia while increasing their positions in Palantir during the second quarter of 2023. Englander sold 1.1 million shares of Nvidia, reducing his stake by 12%, while simultaneously purchasing 3.6 million shares of Palantir, raising his investment by 282%. Rokos sold 283,544 shares of Nvidia (down 14%) and added 103,409 shares of Palantir (up 185%).
Nvidia’s stock has surged 1,100% year-to-date, driven by demand for AI infrastructure and networking gear, with its revenue in the first quarter hitting $44 billion, a 69% increase. In contrast, Palantir has seen its shares jump 2,360%, with a second-quarter revenue rise of 48%, reaching $1 billion, and its customer count increasing by 43% to 849. However, Palantir trades at a staggering 120 times sales, the highest in the S&P 500.
Both hedge funds have outperformed the S&P 500 over the past three years. Analysts generally view Palantir as overpriced, casting doubt on the recent buy. Despite this, Nvidia remains a significant holding for both funds, indicating continued confidence in the company.
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