Billionaire Jeff Yass Increased Susquehanna’s Position in Nvidia’s Largest Competitor by 94%. Time to Buy?

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Right now, there is no hotter area to invest than artificial intelligence (AI). Over the last two years, AI’s most lucrative opportunities have been concentrated in a small cohort of megacap tech stocks known as the “Magnificent Seven.” And within the Magnificent Seven, semiconductor darling Nvidia has emerged at the forefront of the pack.

On the surface, investing in Nvidia makes all the sense in the world if you want exposure to AI. However, smart investors understand that sometimes the most obvious opportunities do not necessarily make 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 last year, while piling into many other names in the chip realm.

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

Thanks to a nifty tool called the 13F filing, investors can find itemized breakdowns of all the buys and sells institutional money managers make on a quarterly basis. I’ve detailed some of SIG’s activity among leading chip stocks over the last year. All numbers 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

Taiwan 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 numbers represent millions of shares.

The main takeaway from this data set is that SIG has reduced positions across Nvidia, Taiwan Semiconductor Manufacturing, and Broadcom over the last year, all while significantly increasing positions in Advanced Micro Devices (NASDAQ: AMD), Micron Technology, and Intel.

NVDA data by YCharts

In the chart, you can see that between Q3 2023 and Q3 2024, the three highest-performing stocks among this peer set of semiconductor businesses are Nvidia, Broadcom, and Taiwan Semiconductor — all of which Yass has been reducing his position in over the last 12 months.

In my eyes, SIG is taking profits off the table in names that have outperformed their peers and beginning to reinvest profits in emerging opportunities in the chip landscape. And from my point of view, AMD looks like the most tempting alternative to Nvidia at the moment.

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