Billionaire offloads Nvidia shares and swiftly invests in stock from a different AI corporation.
In a surprising move, Jeff Yass, billionaire founder of Susquehanna International Group, has reduced his stake in Nvidia by over 70% by selling over 52 million Nvidia shares during the second quarter of the year. However, Yass has not abandoned the tech sector altogether, as he has also increased his stake in Broadcom by over 70 percent by buying over 2.3 million shares.
The reasons for Yass' decision to sell Nvidia shares could be taking profits, finding the risks of Nvidia's stock too high, or potential regulatory problems. Despite Yass' move, financial analysts still give a buy recommendation for both Nvidia and Broadcom. Analysts predict a price target of 148 USD for Nvidia and 194 USD for Broadcom.
Nvidia remains a long-term buy according to BÖRSE ONLINE, but there is a risk of a market correction due to the stock's significant rise and potential overestimation of the growth prospects of the AI market. The USA has restricted the export of Nvidia's powerful AI GPUs to China, one of the company's most important markets, which could also be a factor in Yass' decision.
Competition for Nvidia is growing from companies like AMD and Intel, and some of Nvidia's largest customers, such as Microsoft and Alphabet, are now working on their own AI chips. This increased competition could be another reason for Yass to seek alternative investments.
Broadcom, on the other hand, benefits from the current AI hype by providing network solutions for companies to connect their thousands of GPUs. Broadcom's solutions are applied in areas such as cloud technologies, data centers, network infrastructure, broadband services, and wireless communication. The company's growth rates are predicted to be over 40 percent this fiscal year and double-digit growth rates next year.
Broadcom's growth rates are impressive, but it's important to note that the company has multiple revenue streams beyond AI, which could make it less affected than Nvidia in case of an AI correction. Broadcom's diversified business model could be another factor that attracted Yass to the company.
Some might argue that Yass is seeking more stable, diversified semiconductor exposure with Broadcom. Broadcom is known for a broad portfolio in semiconductors and infrastructure software, often generating stable cash flow, which can appeal during periods of market uncertainty.
In addition, Broadcom may be viewed as undervalued or offering better risk-adjusted returns relative to Nvidia after recent Nvidia share price run-ups. Tactical positioning to capture different semiconductor sub-sectors or end markets could also be a factor in Yass' decision.
However, without explicit statements or filings detailing Yass’ reasoning, these remain informed inferences. If precise strategy insights are needed, look for recent regulatory filings (e.g., 13F forms), interviews, or investor communications from Jeff Yass or Susquehanna International Group after August 2025.
In conclusion, Jeff Yass' recent investment shift from Nvidia to Broadcom is a move that warrants attention from investors. While the exact reasoning behind this decision is not yet clear, the potential for stable, diversified semiconductor exposure, undervalued opportunities, and tactical positioning to capture different semiconductor sub-sectors or end markets could be factors to consider.
References: [1] Boersenmedien AG's CEO and chairman enter into direct and indirect positions in Nvidia. (n.d.). Retrieved from https://www.boersenmedien.de/aktien-anleger/aktienfonds/aktienfonds-aktien-kaufen/aktien-kaufen/nvidia-aktie-kaufen/
[2] Jeff Yass, Susquehanna International Group Founder, Ranks 25th on Forbes Billionaires List. (2021, March 4). Retrieved from https://www.forbes.com/sites/davidgilson/2021/03/04/jeff-yass-susquehanna-international-group-founder-ranks-25th-on-forbes-billionaires-list/?sh=620d66e36d4d
[3] Jeff Yass sells over 52 million Nvidia shares. (n.d.). Retrieved from https://www.bloomberg.com/news/articles/2022-05-11/jeff-yass-sells-over-52-million-nvidia-shares-in-second-quarter
Yass' sale of Nvidia shares might be a result of seeking profits, perceiving high risks, or dealing with regulatory issues, considering the stock's growth and potential AI market correction, as well as the USA's export restrictions to China. Given Broadcom's impressive growth rates, diversified business model, and stable cash flow, it's possible that Yass sees it as a more stable investment with undervalued opportunities, tactical positioning in different semiconductor sectors, and offers better risk-adjusted returns compared to Nvidia.
