Billionaire Philippe Laffont Dumped AI Titan Nvidia for the 11th Time in 12 Quarters. What Does He Know That Wall Street Doesn't?

3 hours ago 2

Sean Williams, The Motley Fool

Wed, May 20, 2026 astatine 12:26 PM CDT 4 min read

Although net play tends to hog each the glory, the quarterly filing of Form 13Fs with regulators tin beryllium arsenic important for investors. A 13F allows investors to way which stocks Wall Street's smartest wealth managers bought and sold successful the latest quarter.

For instance, Coatue Management's billionaire plus manager, Philippe Laffont, was a engaged bee during the archetypal quarter. He sold retired of 16 positions and pared down 22 others, nary of which has a much awesome pedigree than the look of the artificial quality (AI) revolution, Nvidia (NASDAQ: NVDA). It marked the 11th clip successful the past 12 quarters that Laffont dumped Nvidia stock, begging the question: What does helium cognize that the remainder of Wall Street doesn't?

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

A businessperson pressing the merchantability fastener connected an oversized integer screen.

Billionaire Philippe Laffont has shed 87% of his fund's involvement successful Nvidia

Despite Nvidia's undisputed enactment presumption successful AI graphics processing units (GPUs), Coatue Management's main capitalist has been a persistent seller of Nvidia for the amended portion of 3 years (share counts person been adjusted to bespeak Nvidia's 10-for-1 banal divided successful June 2024):

Q1 2023: 49,802,020 shares held
Q2 2023: 46,449,700 shares (-3,352,320)
Q3 2023: 45,410,400 shares (-1,039,300)
Q4 2023: 43,222,010 shares (-2,188,390)
Q1 2024: 13,851,410 shares (-29,370,600)
Q2 2024: 13,754,447 shares (-96,963)
Q3 2024: 10,138,161 shares (-3,616,286)
Q4 2024: 10,006,488 shares (-131,673)
Q1 2025: 8,545,835 shares (-1,460,653)
Q2 2025: 11,488,529 shares (+2,942,694)
Q3 2025: 9,870,743 shares (-1,617,786)
Q4 2025: 9,203,338 shares (-667,405)
Q1 2026: 6,331,620 shares (-2,871,718)

Collectively, Coatue's presumption has been slashed by 87% successful 3 years. The prevailing question is: Why?

Image source: Nvidia.

Profit-taking apt isn't the afloat communicative

Profit-taking is the logical answer. Nvidia banal has skyrocketed by much than 700% since Coatue's presumption successful the institution peaked successful the March-ended 4th of 2023. With Laffont often holding halfway positions for an mean of 2 to 3 years, paring down this involvement aft an outsize instrumentality makes sense.

But profit-taking apt tells lone portion of the story.

Laffont mightiness besides beryllium acrophobic astir competitory pressures. Though Nvidia's GPUs presently clasp a virtual monopoly successful endeavor information centers, galore of its apical customers by nett income are internally processing hardware to usage successful their ain information centers.

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