Hedge Fund Billionaires Buy Alphabet and ServiceNow Shares in Q1 2024 – Nvidia Stock
Nvidia Stock : During the first quarter of 2024, several hedge fund billionaires were actively buying shares of Alphabet and ServiceNow, while selling off their positions in Nvidia. Despite Nvidia's popularity on Wall Street over the past two years, its high valuation has made professional money managers cautious. – Nvidia Stock
Nvidia Stock Sell-Off by Hedge Fund Billionaires
Nvidia, one of the hottest stocks in recent years, has seen a decline in large holdings by institutional investors. According to Morgan Stanley, Nvidia was the second-most under-owned big tech stock in institutional portfolios in the first quarter of 2024. Contributing to this trend, several hedge fund billionaires sold their Nvidia shares and bought Alphabet (GOOGL) and ServiceNow (NOW) shares instead. – Nvidia Stock
Key Hedge Fund Moves: Alphabet and ServiceNow
- Louis Bacon (Moore Capital Management): Sold 2,006 shares of Nvidia, reducing his stake by 19%. He initiated a position in Alphabet, which is now among his top 20 non-option holdings.
- Israel Englander (Millennium Management): Sold 720,004 shares of Nvidia, reducing his stake by 35%. He significantly increased his position in ServiceNow by 728%, making it one of his top 30 non-option holdings.
- David Shaw (D.E. Shaw): Sold 1.4 million shares of Nvidia, reducing his stake by 38%. He also boosted his position in ServiceNow by 17%, ranking it among his top 60 non-option holdings.
- Paul Tudor Jones (Tudor Investment): Sold 103,337 shares of Nvidia, reducing his stake by 78%. He increased his position in Alphabet by 347%, making it one of his top 30 non-option holdings.
Investment Insights: Alphabet and ServiceNow
Despite the reduction in Nvidia holdings, these hedge fund billionaires still have exposure to the stock, indicating it's not a bad investment. However, Alphabet and ServiceNow have delivered impressive returns of 174% and 179% respectively over the last five years, making them attractive alternatives.
Alphabet's Growth Potential – Nvidia Stock
Alphabet (GOOGL) continues to dominate the digital advertising space and is the third-largest cloud infrastructure provider. The company's AI-driven solutions are driving growth across its business segments. In the second quarter, Alphabet reported a 14% revenue increase to $84.7 billion, with a 31% rise in GAAP net income. CEO Sundar Pichai highlighted that Alphabet's AI infrastructure has generated significant revenue and is being utilized by over 2 million developers. Despite a slight dip in stock price, this creates a buying opportunity for patient investors.
ServiceNow's Strong Performance – Nvidia Stock
ServiceNow (NOW) excels in workflow management software, especially in IT service management and AI for IT operations. In Q2, ServiceNow's revenue grew by 22% to $2.5 billion, and non-GAAP net income surged by 32% to $3.13 per diluted share. The company's renewal rate remained strong at 98%, and the introduction of Now Assist, a generative AI tool, has shown tremendous potential. Although ServiceNow's current valuation is high, its leadership in IT software and expanding AI capabilities promise robust growth. – Nvidia Stock
Conclusion
Hedge fund billionaires' trades reflect a shift towards Alphabet and ServiceNow, indicating their confidence in these stocks' future performance. While Nvidia remains a significant holding, the impressive returns from Alphabet and ServiceNow over the past five years make them worthy of consideration for any investor's portfolio.
By focusing on these insights, investors can make informed decisions and potentially benefit from the strategic moves of hedge fund billionaires. – Nvidia Stock