TLDR
- Billionaire Ken Griffin increased his Nvidia stake by 414% in Q2, purchasing 6.5 million shares worth ~$1.175 billion
- Griffin simultaneously trimmed his AMD holdings by 67%, selling 2.4 million shares during the same period
- Nvidia commands over 80% market share in AI chips and reported Q1 revenue of $44.06 billion, up 69.2% year-over-year
- AMD posted strong Q2 results with revenue climbing 31.7% to $7.69 billion and guided Q3 revenue well above Street expectations
- Analysts remain bullish on Nvidia with a $225 price target while AMD faces more cautious sentiment despite recent gains
Citadel founder Ken Griffin made contrasting moves in two major AI chip stocks during the second quarter. The billionaire hedge fund manager dramatically increased his Nvidia position while reducing his Advanced Micro Devices holdings.
Griffin purchased 6,513,348 Nvidia shares during Q2, representing a 414% increase in his stake. The position is currently valued at approximately $1.175 billion, making it one of Citadel’s largest technology holdings.
At the same time, Griffin sold 2,433,332 AMD shares, cutting his position by 67%. This reduction came as AMD stock surged 127% from April lows following earlier tariff concerns.
The moves reflect Griffin’s assessment of the AI chip landscape. Nvidia maintains dominant market position with over 80% share of the AI chip market used in data centers that power artificial intelligence applications.
Nvidia’s financial performance supports Griffin’s confidence. The company reported first-quarter revenue of $44.06 billion, up 69.2% year-over-year and beating consensus estimates by $810 million.
Strong Nvidia Fundamentals Drive Interest
Data center revenue accounted for $39.1 billion of Nvidia’s total revenue, representing a 73% annual increase. Adjusted earnings per share of $0.81 exceeded forecasts by $0.06.
Piper Sandler analyst Harsh Kumar expects continued strength from Nvidia. He anticipates positive results for both the July and October quarters, citing supportive commentary from major cloud providers.
Kumar projects potential China revenue of approximately $6 billion for the October quarter. He notes that current estimates don’t fully reflect resumed China business following recent policy changes.
The analyst rates Nvidia as Overweight with a $225 price target, implying 25% upside potential. Wall Street consensus supports this view with 35 Buy ratings, 2 Holds, and 1 Sell.
AMD Shows Growth But Faces Skepticism
AMD delivered solid second-quarter results with revenue climbing 31.7% year-over-year to $7.69 billion. The figure exceeded analyst expectations by $260 million.
Adjusted earnings per share of $0.48 met consensus estimates. AMD guided third-quarter revenue to $8.7 billion, well above the Street forecast of $8.32 billion.
However, Morgan Stanley analyst Joseph Moore expressed caution about AMD’s prospects. He noted that console gaming drove the revenue beat, which he considers the lowest quality portion of AMD’s business.
Moore also questioned whether datacenter GPU growth will be sufficient to maintain bullish sentiment. He rates AMD as Equal-Weight with a $168 price target, implying 5% downside.
Despite analyst caution, AMD maintains a Moderate Buy consensus rating with 25 Buy recommendations and 10 Hold ratings. The stock has recovered strongly from earlier tariff-related declines.
Griffin’s contrasting positions highlight the competitive dynamics in the AI chip sector. Nvidia’s established ecosystem and market leadership continue to attract institutional investment, while AMD faces perception challenges despite solid operational performance.
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