Whale Rock Just Dumped Most of Its Nvidia Stake

Whale Rock Capital Management executed a number of noteworthy portfolio changes during the second quarter, yet one deserves special attention. Namely, the hedge fund sharply reduced its exposure to Nvidia (NVDA) in Q2.

According to the most recent 13F filing from the firm, Whale Rock decreased its Nvidia holding from approximately 1.04 million shares to 377,204 shares in Q2. This marks a reduction of about 64%, which is quite a significant step for a company at the heart of the AI infrastructure boom. On the other hand, Whale Rock increased its Advanced Micro Devices (AMD) stake from just 69,211 shares to roughly 1.51 million shares. Therefore, one can safely say that this was not a complete selloff of AI semiconductor stocks. Let’s take a closer look.

Nvidia Stock Overview

Based in Santa Clara, California, Nvidia (NVDA) designs GPUs, networking products, accelerated computing platforms, and software for a wide range of markets, including data centers and gaming. Nvidia has emerged as a leader of computing infrastructure for artificial intelligence (AI), bringing its market capitalization to $5.24 trillion today.

NVDA stock currently trades near $215 per share, only about 10% shy of its 52-week high of $236.54 and roughly 24% above the 52-week low of $164.07.

Valuation is another matter. NVDA stock trades at a forward price-to-earnings (P/E) multiple of 25.2 times and approximately 24.3 times…