Latest news with #PhilippeLaffont
Globe and Mail
2 days ago
- Business
- Globe and Mail
This AI Giant Is Among the Top 5 Holdings of Billionaires David Tepper, Philippe Laffont, and Stephen Mandel Jr. -- and It's Not Nvidia
Investors, including billionaires, have generated enormous returns by investing in Nvidia (NASDAQ: NVDA) in recent years. The artificial intelligence (AI) chip giant climbed more than 800% from the start of 2023 through the end of last year as demand for its products and services soared. And with the AI market forecast to reach beyond $2 trillion a few years down the road, it's likely Nvidia will continue to benefit. But it's important to remember that Nvidia isn't the only attractive AI bet to be found. In fact, right now, some of the world's top investors are favoring another AI giant over Nvidia. This particular player is among the top five holdings of billionaires David Tepper of Appaloosa Management, Philippe Laffont of Coatue Management, and Stephen Mandel Jr. of Lone Pine Capital. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » This company, like Nvidia, already has brought in billions of dollars in revenue thanks to AI -- and could win as the AI boom continues. Let's find out more. These billionaires like technology stocks First, it's important to note that these three billionaires have significant positions in technology stocks, with other such players among their top 10 holdings. So they clearly believe in the AI revolution and are setting themselves up to potentially gain as AI becomes more and more a part of our daily lives and the operations at businesses of every size. For example, Tepper and Mandel each have three Magnificent Seven stocks among their 10 most heavily weighted holdings, and Laffont has four. So, which company has caught the eye of these technology-focused investors? None other than AI powerhouse Amazon (NASDAQ: AMZN). As of the first quarter of the year, Amazon is the third biggest stock position in Tepper's $8.3 billion portfolio, the second-biggest in Laffont's $22 billion portfolio, and the third- largest in Mandel's $11 billion fund. Here are the details: Tepper holds 2,510,000 Amazon shares, and the stock represents 5.7% of the portfolio. Laffont holds 10,753,808 Amazon shares, and the stock represents 9.02% of his portfolio. Mandel holds 4,352,740 Amazon shares, and they represent 7.15% of his portfolio. This is according to the billionaires' 13Fs, filings that managers of $100 million or more must submit to the Securities and Exchange Commission on a quarterly basis. Is this AI player right for you? Now the question is: These billionaires clearly see Amazon as a fantastic AI investment, but is it right for you too? After all, though billionaires have demonstrated their investment expertise, some of their moves may not suit your investment strategy or comfort with risk. It's important to take these elements into consideration before diving in. You probably are most familiar with Amazon thanks to its e-commerce business. It's built an empire in the area, and one that extends around the globe. The operation helps the company generate billions of dollars in revenue year after year, and its extensive fulfillment network and popular subscription program Prime offer it a significant competitive advantage, or moat. But Amazon also is becoming a leader in AI, using the technology to streamline those e-commerce operations and even developing and selling AI products and services to customers through its Amazon Web Services (AWS) unit. In fact, due to Amazon's aggressive push into the AI space, AWS recently delivered a $117 billion annual revenue run rate. So Amazon already is generating significant growth from this hot technology. Well positioned for a win And since AWS is the world's leading cloud services provider, it's in the perfect spot to capture more and more business. As AWS customers develop AI projects, they have all that they need right at their fingertips on AWS -- from access to top chips like Nvidia's to a fully managed service that tailors popular large language models to a customer's needs. The AI buildout continues, and AWS is set to gain from this and from the next stages of AI, as customers apply AI to their businesses more and more. Meanwhile, Amazon offers a solid track record of earnings growth and has demonstrated its ability to manage turbulent times and go on to grow. For example, the company revamped its cost structure when higher inflation hurt earnings a few years ago and returned to growth within a year. All of this shows that Amazon is well positioned to benefit from the AI boom, but the stock also offers you security thanks to its well-established and profitable e-commerce and cloud businesses. And this means that, whether you're a cautious or aggressive investor, you may, like the billionaires, want to make Amazon one of your key AI bets. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy.
Yahoo
5 days ago
- Business
- Yahoo
Billionaires Are Buying 2 Artificial Intelligence (AI) Stocks That Wall Street Analysts Say Can Soar Up to 240%
Several billionaire hedge fund managers bought shares of Palantir and/or Upstart in the first quarter -- stocks where certain analysts anticipate substantial upside. Palantir is successfully tapping demand for artificial intelligence (AI) with government and commercial customers, but the stock trades at a very expensive valuation. Upstart is generating attractive returns for lenders by helping them quantify credit risk with artificial intelligence, and the stock trades at a very reasonable valuation. 10 stocks we like better than Palantir Technologies › Large asset managers are required to disclose their equity holdings in quarterly Forms 13F. Investors can use those filings to track which stocks billionaires are buying. For instance, several hedge fund managers bought Palantir Technologies (NASDAQ: PLTR) and Upstart (NASDAQ: UPST) in the first quarter, as detailed below: Chris Rokos of Rokos Capital Management bought 55,809 shares of Palantir, starting a new position. Philippe Laffont of Coatue Management added 521,887 shares of Upstart, increasing his stake 150%. Ken Griffin of Citadel Advisors bought 902,486 shares of Palantir, increasing his position 204%. He also added 202,094 shares of Upstart, increasing his stake 618%. Paul Tudor Jones of Tudor Investment bought 149,191 shares of Palantir, increasing his position 573%. He also added 13,729 shares of Upstart, increasing his stake 28%. Importantly, certain Wall Street analysts see tremendous returns ahead for shareholders. Dan Ives at Wedbush Securities expects Palantir to be a $1 trillion company within three years, which implies 240% upside from its current market value of $294 billion. And Dan Dolev at Mizuho Securities recently set Upstart with a target price of $85 per share, which implies 85% upside from its current share price of $46. In its earliest days, Palantir built bespoke data analytics solutions for the U.S. intelligence community. But the company now focuses on developing modular software platforms for customers across the commercial and government sectors. Its core products (Gotham and Foundry) let customers integrate complex information and extract nuanced insights with machine learning models and analytical tools. Importantly, in 2023, Palantir introduced an adjacent Artificial Intelligence Platform (AIP) that adds support for large language models and natural language processing. In other words, AIP lets organizations infuse their data analytics workflows with generative AI. Forrester Research recently recognized Palantir as a technology leader in artificial intelligence and machine learning platforms. Palantir looked strong in the first quarter. Customer count increased 39% to 769, and the average spend per existing customer increased 24%. In turn, revenue rose 39% to $884 million, and non-GAAP (generally accepted accounting principles) earnings jumped 62% to $0.13 per diluted share. Management attributed the strong performance to demand for its AI platform. Wall Street estimates Palantir's adjusted earnings will increase at 31% annually through 2026. That makes the current valuation of 270 times earnings look outrageously expensive. Investors can look at this stock in two ways: On one hand, I think Dan Ives is right in saying Palantir will be a trillion-dollar company eventually. On the other hand, I also believe the stock is due for a sharp correction. Patient investors comfortable with volatility can reconcile those opposing views by purchasing a very small position today. And if the stock drops sharply in the coming months, they can consider buying more shares at cheaper valuations. Upstart has developed a lending platform that leans on artificial intelligence to help banks and credit unions quantify credit risk more accurately than traditional credit scores. Its business benefits from a network effect in that every data point -- whenever a borrower makes or misses a payment -- makes its machine learning models more effective. Upstart reported solid financial results in the first quarter, beating expectations on the top and bottom lines. Loan originations more than doubled, revenue increased 67% to $2.1 billion, and non-GAAP net income was $0.30 per diluted share, up from a loss of $0.31 per diluted share in the same quarter last year. Nevertheless, Upstart stock crashed after the earnings report, likely because investors are worried about the lending environment. Tariffs imposed by the Trump administration threaten to slow economic growth, perhaps to the point of recession. That would be bad news for Upstart because banks are usually more conservative about extending credit during periods of economic upheaval. However, that creates an opportunity for patient investors. Wall Street expects adjusted earnings to grow at 195% annually through 2026, which makes the current valuation of 140 times earnings look reasonable. Even if the consensus is overly optimistic, Upstart still lets lenders approve more borrowers at lower rates, which should drive demand for its platform in the long run. Importantly, Upstart-powered loans originated in the last eight quarters have beat the two-year Treasury yield by an average of 8 percentage points. That very attractive return should bring more lenders to the platform and help the company capitalize on its $3 trillion addressable market. So, while shareholders may not see 85% returns in the next year, given the uncertain economic environment, I expect the stock to perform well over the next five years. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Trevor Jennewine has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies and Upstart. The Motley Fool has a disclosure policy. Billionaires Are Buying 2 Artificial Intelligence (AI) Stocks That Wall Street Analysts Say Can Soar Up to 240% was originally published by The Motley Fool
Globe and Mail
7 days ago
- Business
- Globe and Mail
Billionaires Philippe Laffont, Chase Coleman, Terry Smith, and Stephen Mandel All Share the Same No. 1 Holding -- and It's Not Nvidia
For many investors, earnings season is the pinnacle of each quarter. It's a six-week period that provides an under-the-hood look at how well a majority of the most-influential public businesses driving the stock market higher or lower have performed. But it can be argued that the quarterly filing of Form 13Fs with the Securities and Exchange Commission (SEC) is just as important. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » A 13F is a required filing no later than 45 calendar days following the end to a quarter for institutional investors overseeing at least $100 million in assets under management. May 15 marked the deadline for money managers to file their 13F with the SEC. This filing details which stocks and exchange-traded funds (ETFs) Wall Street's brightest asset managers have been buying and selling. Even though 13F data can be stale for active hedge funds, they're nevertheless insightful in helping investors weed out which stocks, industries, sectors, and trends have the attention of the world's smartest fund managers. Based on first-quarter 13Fs, an interesting quirk emerged: One stock stood out as the largest holding for billionaires Philippe Laffont of Coatue Management, Chase Coleman of Tiger Global Management, Terry Smith of Fundsmith (aka, " Britain's Warren Buffett"), and Stephen Mandel of Lone Pine Capital. Four different investing styles converge on one stock -- and it's not Nvidia With thousands of publicly traded companies and ETFs to choose from, there's a statistically small probability that four prominent billionaire money managers are going to settle on the same stock as their respective fund's top holding. Things get even weirder when you realize that all four fund managers have differing investment styles: Philippe Laffont oversees $22.7 billion at Coatue Management and is prominently known for his focus on large-cap growth stocks and Wall Street's hottest trends, such as artificial intelligence (AI). Chase Coleman is managing roughly $26.6 billion at Tiger Global and also favors growth stocks, but with more of flair for small caps. Terry Smith is guiding the investment of $22 billion in capital at Fundsmith and is known as a diehard value investor, much like Warren Buffett. Stephen Mandel is managing close to $11.6 billion at Lone Pine and tends to put his fund's capital to work in a mix of growth stocks and companies exacting turnarounds. Most investors would probably be inclined to believe that AI colossus Nvidia (NASDAQ: NVDA) is the company all four billionaires have settled on as their top holding. Nvidia touches on Laffont's love for hot Wall Street trends; it's a growth stock that Coleman and Mandel can rally around; and its shares dipped to a forward price-to-earnings (P/E) ratio of 19 during the stock market's first-quarter swoon, which is its cheapest forward P/E in years (i.e., Terry Smith would possibly be interested). Furthermore, Nvidia offers a seemingly sustainable moat that top-tier money managers love to put their capital behind. Its Hopper (H100) graphics processing unit (GPU) and Blackwell GPU architecture are the leading options deployed in AI-accelerated data centers. No direct AI-GPU developer has come particularly close to matching the compute abilities or innovation timeline of Nvidia. But Nvidia isn't the correct answer. However, the stock in question is most definitely "Magnificent." The No. 1 holding of four prominent billionaires has gained 1,570% since its IPO Few companies check all the right boxes for billionaires Philippe Laffont, Chase Coleman, Terry Smith, and Stephen Mandel -- but social media maven Meta Platforms (NASDAQ: META), which is a member of the " Magnificent Seven" alongside Nvidia, fits the mold. Based on the latest round of 13F filings, Meta was the clear No. 1 holding by market value for all four billionaires and respectively accounted for: Coatue Management: 9.55% of invested assets Tiger Global Management: 16.18% of invested assets Fundsmith: 10.19% of invested assets Lone Pine Capital: 8.75% of invested assets Since its initial public offering (IPO) in May 2012, shares of Meta Platforms have increased by 1,570%, as of this writing. These gains have been made possible by four factors, all of which have probably played at least some role in making Meta the No. 1 holding for four highly successful billionaire asset managers. The first variable working in Meta's favor is its foundational social media platforms. Collectively, the company's family of apps, which includes Facebook, WhatsApp, Instagram, Threads, and Facebook Messenger, helped lure an average of 3.43 billion daily active people during March 2025. No other social media company comes remotely close to this figure, which affords Meta a superior level of ad-pricing power. Secondly, but building on this first point, Meta's operating performance and stock tend to ebb-and-flow with the health of the U.S. economy. Almost 98% of the company's net sales can currently be traced to advertising. Since the average U.S. economic expansion lasts considerably longer than the typical recession, Meta's ad-driven core is well-positioned to thrive over long periods. The third variable likely luring all four billionaire investors is Meta's addressable market for artificial intelligence. It's already deploying generative AI solutions into its ad platforms to allow businesses to tailor unique message(s) to users of its apps. But Meta is also investing aggressively in the future, which more than likely includes the company acting as a leading on-ramp to the metaverse -- the 3D digital world where people can interact with each other and their surroundings. CEO Mark Zuckerberg has a knack for holding back on monetizing new innovations until the time is right. The fourth and final reason Philippe Laffont, Chase Coleman, Terry Smith, and Stephen Mandel likely piled into Meta stock is the company's cash-rich balance sheet. Meta ended March with north of $70 billion in cash, cash equivalents, and marketable securities, and generated $24 billion in net cash from its operating activities through just the first three months of the year. It can invest in higher-growth initiatives and take risks that few other companies can match. With Meta Platforms expected to sustain a mid-teens sales growth rate, its forward P/E ratio of 22 remains quite attractive. Should you invest $1,000 in Meta Platforms right now? Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor 's total average return is982% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.
Yahoo
7 days ago
- Business
- Yahoo
Billionaires Philippe Laffont, Chase Coleman, Terry Smith, and Stephen Mandel All Share the Same No. 1 Holding -- and It's Not Nvidia
Quarterly-filed Form 13Fs offer a way for everyday investors to track which stocks Wall Street's leading money managers purchased and sold in the latest quarter. Billionaire fund managers Philippe Laffont, Chase Coleman, Terry Smith (a.k.a., "Britain's Warren Buffett"), and Stephen Mandel all have differing investment styles. The No. 1 holding for these esteemed billionaire asset managers offers a laundry list of competitive advantages. 10 stocks we like better than Meta Platforms › For many investors, earnings season is the pinnacle of each quarter. It's a six-week period that provides an under-the-hood look at how well a majority of the most-influential public businesses driving the stock market higher or lower have performed. But it can be argued that the quarterly filing of Form 13Fs with the Securities and Exchange Commission (SEC) is just as important. A 13F is a required filing no later than 45 calendar days following the end to a quarter for institutional investors overseeing at least $100 million in assets under management. May 15 marked the deadline for money managers to file their 13F with the SEC. This filing details which stocks and exchange-traded funds (ETFs) Wall Street's brightest asset managers have been buying and selling. Even though 13F data can be stale for active hedge funds, they're nevertheless insightful in helping investors weed out which stocks, industries, sectors, and trends have the attention of the world's smartest fund managers. Based on first-quarter 13Fs, an interesting quirk emerged: One stock stood out as the largest holding for billionaires Philippe Laffont of Coatue Management, Chase Coleman of Tiger Global Management, Terry Smith of Fundsmith (aka, "Britain's Warren Buffett"), and Stephen Mandel of Lone Pine Capital. With thousands of publicly traded companies and ETFs to choose from, there's a statistically small probability that four prominent billionaire money managers are going to settle on the same stock as their respective fund's top holding. Things get even weirder when you realize that all four fund managers have differing investment styles: Philippe Laffont oversees $22.7 billion at Coatue Management and is prominently known for his focus on large-cap growth stocks and Wall Street's hottest trends, such as artificial intelligence (AI). Chase Coleman is managing roughly $26.6 billion at Tiger Global and also favors growth stocks, but with more of flair for small caps. Terry Smith is guiding the investment of $22 billion in capital at Fundsmith and is known as a diehard value investor, much like Warren Buffett. Stephen Mandel is managing close to $11.6 billion at Lone Pine and tends to put his fund's capital to work in a mix of growth stocks and companies exacting turnarounds. Most investors would probably be inclined to believe that AI colossus Nvidia (NASDAQ: NVDA) is the company all four billionaires have settled on as their top holding. Nvidia touches on Laffont's love for hot Wall Street trends; it's a growth stock that Coleman and Mandel can rally around; and its shares dipped to a forward price-to-earnings (P/E) ratio of 19 during the stock market's first-quarter swoon, which is its cheapest forward P/E in years (i.e., Terry Smith would possibly be interested). Furthermore, Nvidia offers a seemingly sustainable moat that top-tier money managers love to put their capital behind. Its Hopper (H100) graphics processing unit (GPU) and Blackwell GPU architecture are the leading options deployed in AI-accelerated data centers. No direct AI-GPU developer has come particularly close to matching the compute abilities or innovation timeline of Nvidia. But Nvidia isn't the correct answer. However, the stock in question is most definitely "Magnificent." Few companies check all the right boxes for billionaires Philippe Laffont, Chase Coleman, Terry Smith, and Stephen Mandel -- but social media maven Meta Platforms (NASDAQ: META), which is a member of the "Magnificent Seven" alongside Nvidia, fits the mold. Based on the latest round of 13F filings, Meta was the clear No. 1 holding by market value for all four billionaires and respectively accounted for: Coatue Management: 9.55% of invested assets Tiger Global Management: 16.18% of invested assets Fundsmith: 10.19% of invested assets Lone Pine Capital: 8.75% of invested assets Since its initial public offering (IPO) in May 2012, shares of Meta Platforms have increased by 1,570%, as of this writing. These gains have been made possible by four factors, all of which have probably played at least some role in making Meta the No. 1 holding for four highly successful billionaire asset managers. The first variable working in Meta's favor is its foundational social media platforms. Collectively, the company's family of apps, which includes Facebook, WhatsApp, Instagram, Threads, and Facebook Messenger, helped lure an average of 3.43 billion daily active people during March 2025. No other social media company comes remotely close to this figure, which affords Meta a superior level of ad-pricing power. Secondly, but building on this first point, Meta's operating performance and stock tend to ebb-and-flow with the health of the U.S. economy. Almost 98% of the company's net sales can currently be traced to advertising. Since the average U.S. economic expansion lasts considerably longer than the typical recession, Meta's ad-driven core is well-positioned to thrive over long periods. The third variable likely luring all four billionaire investors is Meta's addressable market for artificial intelligence. It's already deploying generative AI solutions into its ad platforms to allow businesses to tailor unique message(s) to users of its apps. But Meta is also investing aggressively in the future, which more than likely includes the company acting as a leading on-ramp to the metaverse -- the 3D digital world where people can interact with each other and their surroundings. CEO Mark Zuckerberg has a knack for holding back on monetizing new innovations until the time is right. The fourth and final reason Philippe Laffont, Chase Coleman, Terry Smith, and Stephen Mandel likely piled into Meta stock is the company's cash-rich balance sheet. Meta ended March with north of $70 billion in cash, cash equivalents, and marketable securities, and generated $24 billion in net cash from its operating activities through just the first three months of the year. It can invest in higher-growth initiatives and take risks that few other companies can match. With Meta Platforms expected to sustain a mid-teens sales growth rate, its forward P/E ratio of 22 remains quite attractive. Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy. Billionaires Philippe Laffont, Chase Coleman, Terry Smith, and Stephen Mandel All Share the Same No. 1 Holding -- and It's Not Nvidia was originally published by The Motley Fool 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
Yahoo
25-05-2025
- Business
- Yahoo
Billionaire Philippe Laffont Just Sold Shares of Nvidia and 2 Other AI Powerhouses and Bought Shares of This Nvidia-Backed Company
Laffont, as founder of Coatue Management, oversees a $22.6 billion portfolio loaded with technology companies and other innovators. His recent AI purchase just soared in the triple-digits. 10 stocks we like better than CoreWeave › The artificial intelligence (AI) boom has driven stock market gains over the past couple of years, but the momentum may be far from over. Not only do analysts predict an AI market of more than $2 trillion by the early 2030s, but current activity in the space supports that. Technology companies from Meta Platforms to Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) have announced billions of dollars in spending to support AI projects. Data center buildout continues. And there are more AI stages to come, such as the moment of AI agents, when companies will apply AI to handle complex real-world problems. All of this is right up the alley of billionaire Philippe Laffont, who as founder of Coatue Management, focuses on innovators and invests heavily in tech companies. In fact, the biggest positions in Coatue's $22.6 billion portfolio are Meta and Amazon, each with weightings of more than 9%. So, it may seem surprising that right now, with so much ahead for AI, Laffont just sold some shares of top AI chip designer Nvidia (NASDAQ: NVDA) and two other AI giants. But, at the same time, Laffont picked up shares of an Nvidia-backed company that could become the next AI powerhouse. Let's take a look at his moves and consider the potential of this newish player. First, as mentioned, it's important to keep in mind that Laffont isn't just dabbling in AI, but is someone who specializes in the technology sector and heavily invests in today's leaders and tomorrow's potential leaders. Laffont holds a computer science degree from MIT and went on to hone his investing skills at Tiger Management, one of the world's first hedge funds. He then became known as one of the "Tiger Cubs," Tiger employees who later launched their own funds -- and he founded Coatue in 1999. It's clear that, considering Laffont's experience and investment priorities, he has his finger on the pulse of the AI market. So, he could offer investors inspiration as they look for AI stocks to buy. In the first quarter of this year, Laffont made the following moves: He sold nearly 15% of his Nvidia position and now holds 8,545,835 shares. He's owned the stock since the third quarter of 2016. He decreased his position in Advanced Micro Devices (NASDAQ: AMD) by almost 24% and now owns 3,240,171 shares. He's owned this stock since the first quarter of 2022. He reduced his position in Alphabet class A shares, those that offer voting rights, by almost 38% to 2,010,681 shares. He's held the stock since the fourth quarter of 2022. And he sold all of his shares of Alphabet class C shares, those that don't offer voting rights. And what Nvidia-backed AI stock did Laffont add to his portfolio? CoreWeave (NASDAQ: CRWV), a company that in late March completed its initial public offering (IPO) and has since seen its stock surge more than 160%, bringing the company's market value to more than $50 billion. Laffont made a decent-sized bet on this player, buying 14,402,999 shares. The IPO itself was considered a flop, as the stock stagnated during its first trading session, then fell before eventually gathering some positive momentum. President Donald Trump's import tariff plans weighed on stocks -- specifically growth players -- and that created a difficult environment for CoreWeave's first trading days. Since, though, optimism about trade deals that won't weigh heavily on the economy and the support of Nvidia have helped CoreWeave stock take off. Nvidia recently said it had a 7% stake in CoreWeave as of March 31. These two tech giants are closely linked because CoreWeave's business is tied to demand for Nvidia's graphics processing units (GPUs). This young company offers customers access to its fleet of 250,000 Nvidia GPUs -- in fact, users can even rent access to them by the hour. So, working with CoreWeave brings customers great flexibility along with the power of Nvidia's top AI chips. This helped CoreWeave report a 420% increase in revenue in the recent quarter to $981 million. It's important to keep in mind, though, that to build up its GPU platform, CoreWeave also built up a considerable level of debt. As of the end of the quarter, current debt totaled $3.8 billion, and non-current debt totaled $4.9 billion. Meanwhile, CoreWeave must continue spending heavily to keep growth going and serve demand -- the company forecasts capital spending of as much as $23 billion this year. And CoreWeave expects annual revenue to reach $4.9 billion to $5.1 billion. It's clear that for a big tech investor like Laffont, it makes sense to lock in some gains from AI giants that have been in the portfolio for a while -- and bet on a new player that's still in its early growth stages. But before you follow Laffont, it's key to consider your investment style. If you're uncomfortable with risk and prefer stability, you're better off sticking with well-established AI players -- such as Nvidia, AMD, or Alphabet. And Laffont, too, continues to believe in their stories as they remain in his portfolio. But, if you're an aggressive investor looking for the next big AI growth story -- and you don't mind some risk and volatility along the way -- you might consider picking up a few shares of CoreWeave. Significant upside could lie ahead as the AI boom continues. Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $640,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $814,127!* Now, it's worth noting Stock Advisor's total average return is 963% — a market-crushing outperformance compared to 168% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. Billionaire Philippe Laffont Just Sold Shares of Nvidia and 2 Other AI Powerhouses and Bought Shares of This Nvidia-Backed Company was originally published by The Motley Fool 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
