Is AMD the new chip darling? Citadel CEO Ken Griffin trims Nvidia stake by half while accumulating shares of AMD; here's how much he has invested

Citadel founder and chief executive officer Ken Griffin has reduced his Nvidia holding by half while increasing his investment in Advanced Micro Devices, revealed a recent SEC filing, reported GuruFocus.

Ken Griffin's Cautious Take on AI's Impact on Trading

Griffin's move comes as he pointed out that, while AI tools have improved productivity, they may not revolutionize core trading strategies, according to the report. His comment indicated that he sees a limited near-term impact on Citadel's performance, as per GuruFocus.

Nvidia's Strong Fiscal Q4 But Still Ken Griffin's Change in Strategy

Though, Nvidia, has been the leader in AI chips for a long time, with about 80% market share, the chipmaker even posted a 78% rise in fiscal Q4 data-centre revenue to $35.6 billion, according to the report. But still, Griffin recently sold 1.55 million shares, cutting his holding in Nvidia by around 50%, as per GuruFocus.


ALSO READ: Jensen Huang bets big: This AI stock now makes up a whopping 78% of Nvidia's entire investment portfolio

Meanwhile, Griffin bought 2.79 million AMD shares, which is worth about $326 million, increasing that position more than threefold, according to the report. AMD's first-quarter revenue of $7.44 billion and 57% year-over-year data-centre growth, might be the reason for the hedge fund titan to shift his holdings, as per GuruFocus.

Why Ken Griffin is Betting Big on AMD

According to GuruFocus, market analysts and market observers have pointed out the growing deployment challenges for Nvidia systems, cooling, configuration and supply-chain complexities, which according to the experts would benefit AMD's simpler solutions.

UBS analyst Timothy Arcuri remains optimistic about AMD's AI roadmap, because of the increasing traction with United States cloud providers, GuruFocus reported.

GuruFocus wrote that, "Griffin's moves underline a cautious view on AI investing: seeking growth in chipmakers that blend performance gains with manageable deployment demands."

FAQs

Why did Ken Griffin reduce his Nvidia stake?
Griffin reduced his Nvidia holdings by 50% due to a more cautious outlook on the near-term impact of AI tools on trading strategies.

How much of Nvidia did Griffin sell?
Griffin sold 1.55 million Nvidia shares, reducing his stake by about 50%.