World’s Biggest Hedge Fund Sold Nvidia, Bought Super Micro, Palantir, and AMD

World’s Biggest Hedge Fund Sold Nvidia, Bought Super Micro, Palantir, and AMD

The world’s largest hedge fund by assets recently made major changes in its investments in tech stocks.

Bridgewater Associates cut down its position in Nvidia stock, buying more shares of Super Micro Computer, Palantir Technologies and Advanced Micro Devices  in the third quarter. The fund disclosed the stock trades, among others, in a form it filed with the Securities and Exchange Commission. Bridgewater declined to comment.

Pensions & Investments puts Bridgewater’s assets at $97.2 billion, more than any other.

Bridgewater sold 1.8 million Nvidia shares to end the third quarter with 4.8 million shares of the maker of chips for artificial intelligence. In the first nine months of 2024, Nvidia stock soared 145% compared with a 21% rise in the S&P 500. So far in the fourth quarter, shares are up 14% while the index is up 4.7%.

While Nvidia’s earnings for the fiscal third quarter, ended Oct. 27, were strong, President-elect Donald Trump has said he would raise tariffs on China, Canada, and Mexico, a move that could cause problems for Nvidia’s supply chain.

At the same time, the AI landscape is changing, and success will spread out to other names, apart from Nvidia.

Super Micro is hoping to capitalize more on AI demand with its servers, but shares are off their March high. The company’s accountant resigned in October, and it has delayed filing earnings reports, putting it out of compliance with Nasdaq listing requirements. Super Micro has filed a plan to fix things.

Super Micro stock ended September with a year-to-date gain of 46%. So far in the fourth quarter, shares are down 22%. Including the effect of a 10-for-1 Super Micro stock split at the start of October, Bridgewater bought 1,453,270 shares in the third quarter to lift its stake to 1,611,040 shares.

The fund bought 437,268 more Palantir shares to end the third quarter with 523,548 shares.

Palantir stock has risen since the company was added to the S&P 500 in September, adding to gains from earlier in 2024. Earnings have been strong, and the company sees “unwavering demand” for AI. In the past week, Palantir switched its stock listing to the Nasdaq from the New York Stock Exchange, expecting to join the Nasdaq 100 index.

Palantir stock rocketed 117% in the first nine months of 2024. So far in the fourth quarter, the shares are up 80%.

AMD stock eked out an 11% rise in the first three quarters of the year. It has fallen 16% so far in the fourth.

A disappointing outlook at the end of October overshadowed a strong third-quarter report. In mid November, AMD said it would reduce head count by 4%, laying off about 1,040 employees. The move is “a part of aligning our resources with our largest growth opportunities,” AMD said.

Bridgewater bought 364,292 more AMD shares to end the third quarter with 1.5 million shares.