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Billionaires shift focus from Nvidia to Amazon

Billionaires shift focus from Nvidia to Amazon

Billionaires Shift

Nvidia has been a big winner in the artificial intelligence (AI) boom, with shares jumping 173% over the past year due to high demand for its graphics processing units (GPUs). However, some billionaire managers trimmed their Nvidia positions in the first quarter while buying shares of Amazon (NASDAQ: AMZN) and Salesforce (NYSE: CRM).

Israel Englander of Millennium Management sold 720,004 Nvidia shares, reducing his stake by 35%. He increased his positions in Amazon and Salesforce by 32% and 36%.

Louis Bacon of Moore Capital Management sold 2,006 Nvidia shares, reducing his stake by 19%. He also increased his Amazon stake by 18% and opened a new Salesforce position.

Philippe Laffont of Coatue Management sold 2,937,060 Nvidia shares, reducing his stake by 68%.

Billionaires invest more in Amazon

He increased his Amazon position by 3% and doubled his Salesforce stake.

“All three hedge fund managers still hold stakes in the chipmaker,” Trevor Jennewine wrote.

“However, Amazon and Salesforce warrant further consideration.” Amazon uses AI to create monetization opportunities and boost efficiency in e-commerce, advertising, and cloud computing.

Wall Street analysts expect Amazon to grow earnings per share at 24% annually over the next three to five years. Salesforce is the market leader in customer relationship management (CRM) software.

Its new products, Data Cloud and Einstein Copilot, extend its addressable opportunities in data management and automation. “CRM spending is forecast to grow significantly through 2030,”

Jennewine noted. “Salesforce stands to benefit, especially with Data Cloud and Einstein Copilot adding value and creating cross-sell opportunities.”

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Wall Street analysts expect Salesforce to grow earnings per share at 21% annually over the next three to five years. While Nvidia remains a major investment, Amazon and Salesforce offer compelling opportunities in the evolving AI sector.

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