Citadel, DE Shaw Halved Nvidia Holdings Pre-Market Rout
Hedge Funds Trimming Stakes
In the lead-up to this month's widespread downturn in the stock market, hedge funds Citadel and DE Shaw considerably reduced their holdings in Nvidia.
According to a recent regulatory filing, Citadel sold more than half of its Nvidia stake, leaving it with about $14 billion worth of shares by the end of June. DE Shaw also significantly reduced its exposure, selling off more than $11 billion worth of shares during the same period.
Nvidia's Recent Performance
Nvidia's stock price has been on a rollercoaster ride in recent months. After hitting an all-time high of over $340 in November 2021, the stock plunged to a low of $161 in June 2022.
The recent sell-off by Citadel and DE Shaw was likely driven by concerns about a slowdown in the graphics chip market. The company has also been facing increased competition from AMD, Intel, and other rivals.
Analyst Commentary
Analysts say the moves by Citadel and DE Shaw are a sign of caution in the market. "These are two of the most sophisticated hedge funds in the world," said one analyst. "If they're selling, it's a sign that they're worried about the market."
Another analyst said that the sell-off could be a buying opportunity for long-term investors. "Nvidia is still a leader in the graphics chip market, and it has a strong pipeline of new products," the analyst said. "If the stock price continues to fall, it could be a good time to buy."
Conclusion
The decision by Citadel and DE Shaw to slash their holdings in Nvidia is a sign of the uncertainty in the market. However, it's important to remember that these are just two hedge funds, and their actions do not necessarily reflect the overall sentiment in the market.
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