Hedge Funds Sell Nvidia Stocks at Fastest Rate in 13 Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Hedge Fund Sell-Off: According to Goldman Sachs, hedge funds sold stocks at the fastest rate in 13 years last month, including Nvidia, reflecting a bearish outlook that could lead to further declines in stock prices.
- Strong Financial Performance: Despite the selling pressure, Nvidia reported record revenue of $68 billion for Q4 FY2026, a 73% year-over-year increase, with adjusted EPS of $1.62, up 82%, demonstrating the company's robust competitiveness in the AI chip market.
- Optimistic Future Outlook: CEO Jensen Huang revealed that Nvidia has visibility into a backlog of over $500 billion for Blackwell and Vera Rubin AI chips through the end of 2026, suggesting the company could generate at least $1 trillion from these chips by 2027, indicating long-term potential in the AI sector.
- Portfolio Expansion: Nvidia has invested billions in key technology companies, including a $2 billion stake in CoreWeave and Nebius Group, which enhances its influence within the AI ecosystem and further solidifies its market position.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 182.080
Low
200.00
Averages
264.97
High
352.00
Current: 182.080
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Chinese Market Recovery: After the sales ban imposed by the Trump administration, Nvidia has received approval to resume shipments to China, and successfully regaining market share could provide a new growth impetus, further solidifying its leadership in the global AI market.
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- Future Exploration Plans: Despite the pause, OpenAI stated it will continue to explore the Stargate project and plans to restart when appropriate regulatory conditions and lower energy costs are in place, indicating the company's confidence in the UK's AI future and its long-term investment intentions.
- Talent Investment and Local Expansion: During the project pause, OpenAI is still investing in talent and expanding its local presence in the UK, aiming to support the government's commitment to adopting frontier AI in public services, demonstrating the company's ongoing commitment to the market.
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- Strategic Investor Involvement: The entry of Nvidia as a strategic investor not only brings financial backing to Nebius but also enhances product market recognition through potential technological synergies, thereby strengthening the company's long-term growth prospects.
- Cost-effective Financing: Nebius successfully raised billions at unusually low rates, providing ample liquidity to support its expansion plans and technological development, further solidifying its leadership position in the AI sector.
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- Chip Design Potential: Anthropic's plans to design its own chips could diminish reliance on existing suppliers such as Alphabet and Amazon, a strategic shift that may reshape the AI supply chain and impact the market positions of related companies.
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