Article Summary
Hedge fund titan Ken Griffin of Citadel lowered his position in Nvidia by half in Q1 2023 while significantly increasing his stake in Advanced Micro Devices (AMD). Griffin, who expressed a cautious approach to AI investing, mentioned that AI tools improve productivity but may not revolutionize core trading strategies. Nvidia still dominates the AI chip market, but recent deployment challenges might benefit AMD’s simplified solutions. Observers like UBS analyst Timothy Arcuri remain optimistic about AMD’s AI roadmap.
What This Means for You
- Consider a balanced approach when investing in AI chipmakers, focusing on companies that offer performance gains and manageable deployment demands.
- Monitor the market dynamics between Nvidia and AMD, as Griffin’s cautious stance on AI investing suggests being watchful for signs of growth or struggle in these tech giants.
- Stay updated on AI trends in various industries, as AI tools contribute to improved productivity but might not bring radical changes in their immediate core operations.
- Be prepared for potential fluctuations in the AI chip market, as experts like Ken Griffin predict limited near-term impact on the finance sector’s performance.
Original Post
May 19 – Citadel founder Ken Griffin trimmed his Nvidia (NASDAQ:NVDA) stake by half in the first quarter while sharply boosting his position in Advanced Micro Devices (NASDAQ:AMD), according to a filing with the SEC.
Griffin said AI tools have improved productivity but may not revolutionize core trading strategies, suggesting he sees limited near-term impact on Citadel’s performance.
Market observers note growing deployment challenges for Nvidia systems, including cooling, configuration and supply-chain complexities, which could benefit AMD’s simpler solutions. UBS analyst Timothy Arcuri remains optimistic on AMD’s AI roadmap, citing rising traction with U.S. cloud providers.
Griffin’s moves underline a cautious view on AI investing: seeking growth in chipmakers that blend performance gains with manageable deployment strategies.
This article first appeared on GuruFocus.
Key Terms
- AI chipmakers
- Nvidia (NVDA)
- Advanced Micro Devices (AMD)
- Citadel
- AI investing
- AI tools
- Deployment challenges
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