Latest news with #Coatue
Yahoo
22-05-2025
- Business
- Yahoo
Billionaire Philippe Laffont Has Cumulatively Sold 83% of Coatue's Nvidia Stake and Is Piling Into Wall Street's Hottest Artificial Intelligence (AI) IPO
The quarterly filing of Form 13Fs offers a way for everyday investors to track the buying and selling activity of Wall Street's leading money managers. Philippe Laffont has been a persistent seller of Nvidia stock for the last two years. Coatue's billionaire chief was an aggressive buyer of another artificial intelligence (AI) stock that's expected to 10X its sales by 2028. These 10 stocks could mint the next wave of millionaires › May has been a data-packed month for investors. Between earnings season, a steady flow of economic data releases from the government, and the Federal Open Market Committee's federal funds rate decision, there's been a lot to unpack. But arguably the most important data release of the quarter occurred one week ago, on May 15. This was the deadline for institutional investors with at least $100 million in assets under management (AUM) to file Form 13F with the Securities and Exchange Commission. A 13F provides investors with a way to track which stocks and exchange-traded funds (ETFs) Wall Street's most prominent money managers have been buying and selling. Though Berkshire Hathaway's Warren Buffett is the most followed of all asset managers, he's far from the only billionaire investor known to deliver outsized returns and move markets. For instance, billionaire fund manager Philippe Laffont of Coatue Management, who's overseeing $22.7 billion in AUM, has a rich track record of outperformance. Laffont is also known for his love of high-growth stocks -- especially those in the tech sector. Based on Coatue's first-quarter 13F, its billionaire chief continued to be a seller of the world's leading artificial intelligence (AI) stock, Nvidia (NASDAQ: NVDA), but absolutely piled into Wall Street's hottest AI-initial public offering (IPO) of the year. Taking into account that Nvidia completed a 10-for-1 forward split in June 2024, Coatue's position in Wall Street's AI darling peaked at 49,802,020 shares in the March-ended quarter of 2023. Over the last two years, Laffont has been paring down this position with regularity. During the first quarter of 2025, Laffont's fund dumped 1,460,653 shares of Nvidia stock, which represents a sequential quarterly decline of about 15%. But over the last eight quarters, Coatue's billionaire boss has overseen the sale of 41,256,185 cumulative shares of Nvidia, representing 83% of the fund's original stake. To be objective, Nvidia has done a lot of things right to get to where it is now. Its Hopper (H100) graphics processing unit (GPU) and successor Blackwell GPU architecture have run circles around the competition, in terms of compute ability. Nvidia's hardware maintains a near-monopoly-like share in enterprise AI data centers. Overwhelming demand for Nvidia's GPUs also boosted its pricing power. With the Hopper and Blackwell commanding a premium over all other GPUs, it's no surprise that Nvidia's gross margin surpassed 70%. But not everything is perfect for Nvidia -- and Laffont's trading activity suggests it. Despite Nvidia having superior hardware, competitive pressures are beginning to weigh on its margins. In addition to direct external competitors ramping up production of their AI-GPUs, many of Nvidia's top customers by net sales are internally developing chips they'll use in their own data centers. The cost and accessibility advantage of relying on internally produced AI solutions could realistically result in Nvidia losing out on valuable future data center real estate. The presence of new external and internal competition is also working to minimize the effect of AI-GPU scarcity. This has been Nvidia's primary competitive edge for two years, and it's the core reason its gross margin surged to as high as 78.4% one year ago. With its gross margin expected to decline, yet again, in the fiscal first quarter, it's clear that Nvidia's biggest advantage is withering. The other big-time concern for Nvidia shareholders is the likelihood of an AI bubble forming and bursting. Including the proliferation of the internet in the mid-1990s, there hasn't been a game-changing innovation in more than three decades that's avoided a bubble-bursting event early in its expansion. The fact that most businesses haven't optimized their AI solutions, and in many instances aren't generating a positive return on their AI investments, strongly signals that investors have (again) overestimated the early innings utility and adoption rate of a next-big-thing trend. With more than 90% of Nvidia's net sales coming from its data center segment in the fiscal fourth quarter of 2025 (ended Jan. 26, 2025), a bursting of the AI bubble would be disastrous for its stock. Although Laffont was a seller of a lot of high-growth tech stocks during the March-ended quarter, there was one artificial intelligence company that caught his attention in a big way -- and it only debuted as a public company days before the end of the first quarter! Arguably no stock was purchased more aggressively in the opening frame of 2025 by Coatue's billionaire chief than Nvidia-backed AI-data center infrastructure company CoreWeave (NASDAQ: CRWV). In its two business days as a publicly traded company in the first quarter (the company's IPO was Friday, March 28), Laffont scooped up 14,402,999 shares, which vaulted it to Coatue's 16th-largest holding by market value. The allure of CoreWeave for Laffont almost certainly has to do with the insatiable enterprise demand for AI computing resources. CoreWeave has purchased 250,000 Hopper chips from Nvidia, which is no small investment. In return, the company can lease out its AI infrastructure and services to clients, with the amount it generates in sales all dependent on things like demand, the services rendered, and the GPUs needed to complete a task. Coatue's billionaire money manager is likely also impressed with CoreWeave's expected growth ramp. Keeping in mind that consensus growth estimates for relatively early stage businesses are often fluid, CoreWeave's sales are projected to catapult from a reported $1.92 billion in 2024 to an estimated $19.66 billion come 2028. The company also announced a strategic deal with OpenAI that tacks on $11.2 billion in its revenue backlog. The numbers on paper absolutely paint an exciting picture for CoreWeave. But the real world doesn't always pan out as things do on paper. To begin with, CoreWeave's net losses are accelerating at the same staggering rate as its sales. As an early stage business, the company had to rely on debt financing to fund its GPU purchases. Last year, CoreWeave had nearly $361 million in net interest expenses. Its annual run in 2025 for net interest expense, based on its recently reported first quarter, is almost $1.06 billion! Investors should expect steep losses as CoreWeave's revenue ramp-up continues. Another sizable concern for CoreWeave, which might actually trump its rapidly widening net loss, is Nvidia's accelerated innovation cycle. Nvidia plans to bring a new high-powered AI chip to market roughly once per year. This means that CoreWeave's predominantly Hopper GPU-powered data centers could quickly become obsolete -- or at the very least, it could substantially weaken the company's pricing power for its services. Lastly, CoreWeave would almost certainly be adversely affected by an AI bubble forming and bursting. Until artificial intelligence matures as a technology, the threat of businesses paring back their AI infrastructure spending remains a tangible concern. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $351,127!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,106!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $642,582!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of May 19, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Nvidia. The Motley Fool has a disclosure policy. Billionaire Philippe Laffont Has Cumulatively Sold 83% of Coatue's Nvidia Stake and Is Piling Into Wall Street's Hottest Artificial Intelligence (AI) IPO was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
Philippe Laffont's Strategic Moves: CoreWeave Inc. Takes Center Stage with 2. ...
Warning! GuruFocus has detected 2 Warning Sign with META. Philippe Laffont (Trades, Portfolio), a prominent figure in the investment world, recently submitted the 13F filing for the first quarter of 2025, shedding light on his strategic investment decisions. Laffont is the founder of Coatue Management, a private hedge fund sponsor headquartered in New York. With a background as a student of Julian Robertson's Tiger Management (Trades, Portfolio), Laffont established Coatue in 1999. The firm is renowned for its tech-focused hedge fund, employing a fundamental analysis approach with both long and short strategies. Coatue's investment portfolio primarily comprises U.S. and non-U.S. publicly traded equity securities, with a significant focus on the information technology sector, which constitutes over half of its total allocated assets. Philippe Laffont (Trades, Portfolio) added a total of 24 stocks to his portfolio, with notable additions including: The most significant addition was CoreWeave Inc (NASDAQ:CRWV), with 14,402,999 shares, accounting for 2.35% of the portfolio and a total value of $534.06 million. The second largest addition was Philip Morris International Inc (NYSE:PM), consisting of 1,555,900 shares, representing approximately 1.09% of the portfolio, with a total value of $246.97 million. The third largest addition was Carvana Co (NYSE:CVNA), with 535,333 shares, accounting for 0.49% of the portfolio and a total value of $111.93 million. Philippe Laffont (Trades, Portfolio) also increased stakes in a total of 18 stocks, among them: The most notable increase was Alibaba Group Holding Ltd (NYSE:BABA), with an additional 3,608,975 shares, bringing the total to 3,801,703 shares. This adjustment represents a significant 1,872.57% increase in share count, a 2.11% impact on the current portfolio, with a total value of $502.70 million. The second largest increase was Lam Research Corp (NASDAQ:LRCX), with an additional 4,163,199 shares, bringing the total to 8,209,569. This adjustment represents a significant 102.89% increase in share count, with a total value of $596.84 million. Philippe Laffont (Trades, Portfolio) also reduced positions in 22 stocks. The most significant changes include: Reduced Adobe Inc (NASDAQ:ADBE) by 1,069,690 shares, resulting in a -60.65% decrease in shares and a -1.6% impact on the portfolio. The stock traded at an average price of $428.84 during the quarter and has returned -12.13% over the past 3 months and -9.07% year-to-date. Reduced Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) by 2,002,065 shares, resulting in a -20.1% reduction in shares and a -1.33% impact on the portfolio. The stock traded at an average price of $194.34 during the quarter and has returned -4.34% over the past 3 months and -1.24% year-to-date. As of the first quarter of 2025, Philippe Laffont (Trades, Portfolio)'s portfolio included 70 stocks. The top holdings were: 9.55% in Meta Platforms Inc (NASDAQ:META) 9.02% in Inc (NASDAQ:AMZN) 5.83% in Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) 5.48% in Constellation Energy Corp (NASDAQ:CEG) 5.41% in Microsoft Corp (NASDAQ:MSFT) The holdings are mainly concentrated in 9 of the 11 industries: Technology, Communication Services, Consumer Cyclical, Industrials, Financial Services, Utilities, Healthcare, Consumer Defensive, and Real Estate. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
14-05-2025
- Business
- Reuters
Exclusive: Legal startup Harvey AI in talks to raise funding at $5 billion valuation
May 14 - Harvey AI, a fast-growing legal startup, is in advanced talks to raise over $250 million in a new round of funding at a valuation of $5 billion, sources familiar with the matter told Reuters. The funding round, led by venture capital firms Kleiner Perkins and Coatue, would mark a significant leap in Harvey's valuation from $3 billion in just a few months. Sequoia Capital, an existing backer, is also expected to increase its investment in this round. Investor interest in Harvey is driven by the company's revenue growth, according to people with knowledge of the company's numbers. Its annualized run rate reached $75 million in April, up from $50 million earlier this year. This 50% increase in a matter of months has been fueled by strategic partnerships with major consulting firms like PwC as well as direct sales to large corporations for in-house general counsel use, said the sources, who requested anonymity to discuss private information. Harvey, Coatue and Sequoia did not respond to requests for comment. Kleiner Perkins declined to comment. Harvey, founded in 2022, has become one of the most high-profile legal startups in the age of generative AI. The company uses AI models and machine-learning algorithms to assist lawyers and legal professionals in various tasks, including document review, contract drafting and legal research. It has focused on selling to elite law firms and the biggest corporations, and building specific modules for tasks such as M&A compliance. The startup, which began by partnering with OpenAI to build a custom-trained model for legal professionals, announced this week that it expanded its offerings by adding foundation models from Anthropic and Google to its platform. The round, once finalized, would mark a doubling down in Harvey for Kleiner Perkins, which co-led Harvey's $80 million Series B in December 2023. The adoption of AI technology has fueled surging interest from venture capital investors in the legal sector, which used to be overlooked by VCs for not having a growing addressable market and being dominated by a handful of big players. In 2024, global investments in legal technology startups reached $2.1 billion, according to data from Crunchbase. The enthusiasm has grown, with February 2025 seeing one of the highest investment totals in U.S. legal tech history. This surge in funding reflects the increasing adoption of AI and other advanced technologies in the legal industry, as firms seek to improve efficiency, reduce costs and enhance the quality of their services in an increasingly competitive market. Goldman Sachs analysts estimated last year that about 44% of legal work could eventually be automated.
The Star
14-05-2025
- Business
- The Star
Exclusive-Legal startup Harvey AI in talks to raise funding at $5 billion valuation
AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration -Harvey AI, a fast-growing legal startup, is in advanced talks to raise over $250 million in a new round of funding at a valuation of $5 billion, sources familiar with the matter told Reuters. The funding round, led by venture capital firms Kleiner Perkins and Coatue, would mark a significant leap in Harvey's valuation from $3 billion in just a few months. Sequoia Capital, an existing backer, is also expected to increase its investment in this round. Investor interest in Harvey is driven by the company's revenue growth, according to people with knowledge of thecompany's numbers. Its annualized run rate reached $75 million in April, up from $50 million earlier this year. This 50% increase in a matter of months has been fueled by strategic partnerships with major consulting firms like PwC as well as direct sales to large corporations for in-house general counsel use, said the sources, who requested anonymity to discuss private information. Harvey, Coatue and Sequoia did not respond to requests for comment. Kleiner Perkins declined to comment. Harvey, founded in 2022, has become one of the most high-profile legal startups in the age of generative AI. The company uses AI models and machine-learning algorithms to assist lawyers and legal professionals in various tasks, including document review, contract drafting and legal research. It has focused on selling to elite law firms and the biggest corporations, and building specific modules for tasks such as M&A compliance. The startup, which began by partnering with OpenAI to build a custom-trained model for legal professionals, announced this week that it expanded its offerings by adding foundation models from Anthropic and Google to its platform. The round, once finalized, would mark a doubling down in Harvey for Kleiner Perkins, which co-led Harvey's $80 million Series B in December 2023. The adoption of AI technology has fueled surging interest from venture capital investors in the legal sector, which used to be overlooked by VCs for not having a growing addressable market and being dominated by a handful of big players. In 2024,global investments in legal technology startups reached $2.1 billion, according to data from Crunchbase. The enthusiasm has grown, with February 2025 seeing one of the highest investment totals in U.S. legal tech history. This surge in funding reflects the increasing adoption of AI and other advanced technologies in the legal industry, as firms seek to improve efficiency, reduce costs and enhance the quality of their services in an increasingly competitive market. Goldman Sachs analysts estimated last year that about 44% of legal work could eventually be automated. (Reporting by Krystal Hu in New York and Anna Tong in San Francisco; Editing by Mark Porter)
CNA
14-05-2025
- Business
- CNA
Exclusive-Legal startup Harvey AI in talks to raise funding at $5 billion valuation
-Harvey AI, a fast-growing legal startup, is in advanced talks to raise over $250 million in a new round of funding at a valuation of $5 billion, sources familiar with the matter told Reuters. The funding round, led by venture capital firms Kleiner Perkins and Coatue, would mark a significant leap in Harvey's valuation from $3 billion in just a few months. Sequoia Capital, an existing backer, is also expected to increase its investment in this round. Investor interest in Harvey is driven by the company's revenue growth, according to people with knowledge of the company's numbers. Its annualized run rate reached $75 million in April, up from $50 million earlier this year. This 50 per cent increase in a matter of months has been fueled by strategic partnerships with major consulting firms like PwC as well as direct sales to large corporations for in-house general counsel use, said the sources, who requested anonymity to discuss private information. Harvey, Coatue and Sequoia did not respond to requests for comment. Kleiner Perkins declined to comment. Harvey, founded in 2022, has become one of the most high-profile legal startups in the age of generative AI. The company uses AI models and machine-learning algorithms to assist lawyers and legal professionals in various tasks, including document review, contract drafting and legal research. It has focused on selling to elite law firms and the biggest corporations, and building specific modules for tasks such as M&A compliance. The startup, which began by partnering with OpenAI to build a custom-trained model for legal professionals, announced this week that it expanded its offerings by adding foundation models from Anthropic and Google to its platform. The round, once finalized, would mark a doubling down in Harvey for Kleiner Perkins, which co-led Harvey's $80 million Series B in December 2023. The adoption of AI technology has fueled surging interest from venture capital investors in the legal sector, which used to be overlooked by VCs for not having a growing addressable market and being dominated by a handful of big players. In 2024, global investments in legal technology startups reached $2.1 billion, according to data from Crunchbase. The enthusiasm has grown, with February 2025 seeing one of the highest investment totals in U.S. legal tech history. This surge in funding reflects the increasing adoption of AI and other advanced technologies in the legal industry, as firms seek to improve efficiency, reduce costs and enhance the quality of their services in an increasingly competitive market. Goldman Sachs analysts estimated last year that about 44 per cent of legal work could eventually be automated.
