Billionaire’s AI Gamble: Nvidia to Alibaba

Now, mark my words, today (Aug. 14) is one of them important days that folks overlook like a cat ignoring a mouse. While the stock market’s circus of earnings reports gets all the headlines, the real show is in them Form 13F filings-Wall Street’s ledger of who’s buying, who’s selling, and who’s just plain confused. These filings, due today, are the kind of thing that’ll make you want to scribble notes on the back of a napkin and mutter, “Huh. That’s peculiar.”

See, every institutional investor with a hundred million or so in assets has to file these reports within 45 days of the quarter’s end. It’s the only time you get to peer behind the curtain and see which stocks the bigwigs are shoving into their portfolios or tossing like yesterday’s cornbread. And let me tell you, when a billionaire investor starts trimming their stake in a company for eight straight quarters, it’s time to sit up and take notice.

Warren Buffett’s the most famous name in the game, but he’s got company. Take Philippe Laffont of Coatue Management-a man who’s been riding the AI gravy train like a riverboat gambler in a gold rush. He’s been selling Nvidia, that AI-GPU titan, for two full years, quarter after quarter, like he’s been told the bubble’s bound to burst and he’s just trying to stay ahead of the burst.

Coatue’s Billionaire Chief Sells 83% of His Nvidia Stake

Now, let’s not mince words: Laffont’s been trimming his Nvidia stake like a man who’s seen the writing on the wall. Accounting for Nvidia’s 10-for-1 stock split in June 2024, his fund’s position in the company has shrunk by 83%. Here’s the math, if you care to follow:

Q1 2023: 49,802,020 shares
Q2 2023: 46,449,700 shares
Q3 2023: 45,410,400 shares
Q4 2023: 43,222,010 shares
Q1 2024: 13,851,410 shares
Q2 2024: 13,754,447 shares
Q3 2024: 10,138,161 shares
Q4 2024: 10,006,488 shares
Q1 2025: 8,545,835 shares

With Nvidia’s shares having multiplied twelvefold since 2023’s start, you’d think Laffont was just cashing in chips at the poker table. But folks, when a man sells for eight straight quarters, it’s not just profit-taking-it’s a signal. A loud one.

Now, why the skittishness? Well, let’s not pretend AI’s a sure thing. Every “next big thing” from the past thirty years has had its bubble burst like a pricked balloon. Investors get all hot and bothered, overhype the next gadget, and then the bubble pops. And Nvidia? They’ve been the golden goose in this AI barnyard. If the bubble bursts, they’re the one left with the broken eggs.

Then there’s the competition. Hopper and Blackwell GPUs are the kings of the hill, but the crown’s getting crowded. Big-name customers are building their own AI-GPUs-slower, cheaper, and just as happy to hog data-center real estate. It’s a race to the bottom, and Nvidia’s pristine margins might not survive the stampede.

And let’s not forget the valuation. Megacaps usually top out at a P/S ratio of 30 to 40. Nvidia’s hovering above 30, which is like a man walking a tightrope with a sack of bricks. One wrong step, and it’s all over.

Billionaire Can’t Stop Buying This Cash-Rich AI Stock

But while Laffont’s been selling Nvidia like it’s last season’s fashion, he’s been buying up Alibaba Group with the enthusiasm of a man who’s found a treasure map. In Q1 2025, his stake in Alibaba swelled from 192,728 shares to 3.8 million. That’s not just a bet-it’s a full-blown obsession.

Now, Alibaba’s not your typical AI stock. It’s got e-commerce roots as deep as a redwood tree, and its cash flow is about as steady as a Mississippi steamboat. With a 41% slice of China’s e-commerce pie and a cloud division that’s got 33% of the country’s cloud infrastructure, Alibaba’s got more than enough oomph to keep its engines running.

And here’s the kicker: Alibaba’s shoveling generative AI into its cloud platform like a man who’s found a gold mine. It’s not just selling servers-it’s selling the future. And with a forward P/E of 11, it’s practically giving it away.

But let’s not get carried away. Alibaba’s got a $51.6 billion war chest and a capital-return program that’s got shareholders drooling. It’s the kind of company that makes you want to mutter, “Now there’s a man who knows how to count his pennies.”

So, what’s the takeaway, you ask? Well, here’s a bit of wisdom from an old riverboat gambler: when the crowd’s all shouting about the next big thing, it’s time to ask if the bubble’s about to pop. And when a billionaire’s buying a stock for eight straight quarters, it’s time to ask why. The answer might just make your pockets heavier-and your conscience lighter.

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2025-08-14 10:13

Coatue’s Billionaire Chief Sells 83% of His Nvidia Stake

Billionaire Can’t Stop Buying This Cash-Rich AI Stock

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