Artificial Intelligence (AI) has the power to revolutionize our lives – at least if big tech is to be believed. Many products have already hit the market, like ChatGPT, and while they have made a splash, the true impact of the technology has yet to be felt. This promise of the future is generating incredible growth for companies involved in AI.
Top money managers are snapping up shares of these companies as they try to wring as much value as possible from technology’s explosive growth. Funds with more than $100 million in assets under management must report their transactions quarterly to the Securities and Exchange Commission on Form 13F. Luckily for us, it’s common knowledge.
Knowing where the “smart money” is flowing can help you make smart decisions, but it should only be part of your information gathering. It turns out that smart money isn’t always so smart — and besides, many managers are selling shares of the following five stocks.
1.Nvidia
Unsurprisingly, the company that made the most hedge fund purchases was Nvidia (NASDAQ:NVDA). It has captured the imagination of the investment world after positioning itself as the go-to chipmaker for all things AI.
Its revenue growth has been incredible, and all this while keeping costs relatively low. The chart below measuring its net profit growth over the past three years shows when AI took off.
Fund managers bought $15.9 billion worth of stocks last quarter. The largest purchases were $6.2 billion from Vanguard and $1.8 billion from Vanguard. black rock.
2. Amazon
One of my favorite pieces of AI, Amazon (NASDAQ:AMZN), runs the world’s largest cloud computing operation, Amazon Web Service (AWS), controlling more than 30% of the cloud market and investing heavily to maintain this share. It is partnering with Nvidia to equip its data centers with the latest and most powerful chips, and has invested $4 billion in OpenAI competitor Anthropic.
Fund managers bought $14.4 billion worth of stocks last quarter. The largest purchases were $2.5 billion (Vanguard) and $1.9 billion (BlackRock).
3.Microsoft
Another solid AI game, Microsoft (NASDAQ:MSFT), supports OpenAI, the creator of the most popular AI application, ChatGPT. When OpenAI released ChatGPT-3 to the public, it became the most rapidly adopted technology in history. For much of the public, ChatGPT, when it comes to AI knowledge, is unaware of Anthropic’s offer or offering. Alphabet‘s.
Microsoft is number 2 in the cloud and is gradually eating into AWS’ market share. Its partnership with OpenAI means Microsoft has the world’s most widely used AI application on its servers. And Microsoft also equips them with Nvidia chips.
Fund managers bought $13.1 billion worth of stocks last quarter. The largest purchases were $2.8 billion (BlackRock) and $1.3 billion from Geode Capital Management.
4. Apple
This one is different from the previous three. Apple (NASDAQ:AAPL) stocks have been sliding for much of the last…
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