Billionaire Philippe Laffont, the head of a $70 billion hedge fund at Coatue Management, has significantly ramped up his investments in Nvidia Corp. NVDA and its leading AI-cloud collaborator, CoreWeave Inc CRWV.
What Happened: Laffont has structured a portfolio that is well-positioned for the upcoming AI capital expenditure super-cycle. His investment strategy is not about pursuing server shipments, but about owning the infrastructure that every AI model will require.
Coatue Management, under Laffont’s leadership, follows a tech-first approach and is recognized for its tech-centric hedge funds. The fund manager has been concentrating on scalable innovation, such as AI, cloud, fintech, and next-gen consumer platforms.
In the second quarter, Coatue amplified its stake in Nvidia by approximately a third, raising its holdings to 11.5 million shares, reports The Street.
Also Read: Jensen Huang And Nvidia: Riding High On AI, But For How Long?
This represents a notable 34% increase from the first quarter. Concurrently, Coatue placed a high-conviction bet on CoreWeave, Nvidia’s top AI-cloud client and strategic ally, adding 3.39 million shares, which brings its stake to around $2.9 billion.
Additionally, Laffont has shifted towards platform and IP, acquiring substantial new stakes in Oracle (valued at $843 million) and Arm (valued at $749.4 million). This diversifies the AI play from semiconductors to software, data, and CPU toll booths.
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Coatue also bolstered its overall AI infrastructure positioning by adding 5.65 million shares in Broadcom (valued at $1.56 billion).
Why It Matters: Laffont’s strategic investments in Nvidia and CoreWeave underscore the growing importance of AI and cloud technologies in the current market.
By focusing on infrastructure over server shipments, Laffont is betting on the long-term growth and sustainability of these technologies.
His pivot towards platform and IP, with significant stakes in Oracle and Arm, further highlights the expanding scope of AI beyond semiconductors.
This diversified approach could potentially offer higher returns and stability amidst market volatility.
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