Home Finance Billionaire Jeff Yass has increased Susquehanna’s position in Nvidia’s biggest competitor by 94%. Time to buy?

Billionaire Jeff Yass has increased Susquehanna’s position in Nvidia’s biggest competitor by 94%. Time to buy?

by Eclipsnews
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Right now, there’s no better area to invest than artificial intelligence (AI). Over the past two years, the most lucrative AI opportunities have been concentrated in a small cohort of mega-cap tech stocks known as the “Magnificent Seven.” And within the Magnificent Seven, semiconductor darling Nvidia has emerged at the forefront of the peloton.

On the surface, investing in Nvidia makes perfect sense if you want exposure to AI. However, smart investors understand that sometimes the most obvious opportunities don’t necessarily make for the wisest investments.

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Take Jeff Yass as an example. The billionaire co-founder of Susquehanna International Group (SIG) has been selling Nvidia stock over the past year, while piling into many other names in the chip world.

Let’s take a look at what moves Yass has made over the past year, and assess why his decision to increase SIG’s stake in Nvidia’s biggest competitor could be a good idea.

Thanks to a handy tool called the 13F applicationInvestors can find detailed breakdowns of all the purchases and sales that institutional money managers make on a quarterly basis. I’ve detailed some of SIG’s activity among the leading chip stocks over the past year. All figures represent millions of shares:

Company

Q3 2023

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Nvidia

43.6

31.9

72.0

19.5

13.9

Advanced micro devices

1.9

1.3

2.0

1.4

2.9

Micron technology

1.0

1.7

1.3

4.8

6.9

Taiwanese semiconductor

4.4

2.7

3.5

2.0

1.5

Intel

4.6

2.9

7.6

7.4

9.9

Broadcom

4.0

3.7

3.2

5.6

1.3

Data source: Hedge Follow. Table by author. Note: All figures represent millions of shares.

The main conclusion from this data set is that SIG has reduced its positions at Nvidia. Taiwanese semiconductor manufacturingAnd Broadcom over the past year, while holdings in the sector have increased significantly Advanced micro devices (NASDAQ: AMD), Micron technologyAnd Intel.

NVDA graph
NVDA data Ygraphs

In the chart, you can see that between Q3 2023 and Q3 2024, the three best-performing stocks in this peer group of semiconductor companies are Nvidia, Broadcom, and Taiwan Semiconductor – all of which Yass has reduced its position in recent years. last 12 months.

In my view, SIG is taking profits off the table in names that have outperformed their peers and starting to reinvest profits into emerging opportunities in the chip landscape. And from my point of view, AMD seems like the most tempting alternative to Nvidia right now.

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