Think Nvidia CEO Jen-Hsun Huang is aggressively dumping shares of the S&P 500 company this year? Just look at what Fidelity and other giant investors are unloading.
Seven holders of Nvidia stock, including Fidelity, GQG Partners and T. Rowe Price, each unloaded more than 30 million shares of the AI giant's stock this year, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. No other investors, including Huang, have cut their positions on the S&P 500 stock anywhere near as much as these investors.
And these are massive sales accounting for significant portions of these giant investors' holdings. The sales occur this year as shares of the AI giant lost roughly a quarter of their value since peaking on June 18.
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Much attention is being paid to Huang's Nvidia stock sales this year. But he's far from the largest seller.
The founder of the AI giant has cut his position by 4.4 million shares this year, says S&P Global Market Intelligence. That adds up to a nearly $450 million reduction just this year. But it's also a minuscule reduction for the company's CEO. Huang's number of shares held is only down 0.5% this year. He's still the fifth largest owner of S&P 500 stock Nvidia, controlling 861 million shares or 3.5% of the company.
Moves by Fidelity are much more dramatic. Fidelity sold more than 232 million shares of Nvidia this year. That's a 19.2% reduction just this year. Now Fidelity is only the fourth largest holder of Nvidia stock, just in front of Huang. Fidelity now owns 976.9 million shares or roughly 4% of the company.
Big Investors Selling S&P 500's Nvidia
But Fidelity has lots of company. GQG Partners sold more than 63 million shares — a reduction of 45.6% of its position just this year. And another value-oriented investment firm, T. Rowe Price, unloaded more than 58 million shares this year for a reduction in its stake by more than 11%.
Where are all these sold shares going? The massive ETF and index fund providers, many forced to buy more Nvidia to meet their market-value weighted index orders, are accumulating shares. Vanguard, the big daddy of index investing, upped its position in just the latest quarter by 0.5%. It now owns 2.1 billion shares of the company or a whopping 8.7% of the company. Vanguard is the largest single owner of Nvidia shares.
Similarly, iShares owner BlackRock upped its position in the S&P 500 stock in the latest quarter by 0.9%. It now owns 1.8 billion shares or 7.5% of the shares outstanding.
Time will soon tell if the index investors are holding the bag for the active investors who are selling.
Largest Reductions In Nvidia Shares Owned
Percentage change in shares this year
| Holder | Latest shares held (million) | Ch. in shares this year | % ch. in shares this year |
|---|---|---|---|
| FMR (Fidelity) | 976.9 | (232.2) | -19.2% |
| GQG Partners | 75.7 | (63.4) | -45.6% |
| T. Rowe Price Group | 464.9 | (58.9) | -11.2% |
| Baillie Gifford | 82.1 | (55.7) | -40.4% |
| Jennison Associates | 107.0 | (36.2) | -25.3% |
| Citadel Advisors | 2.4 | (33.9) | -93.3% |
| Edgewood Management | 15.7 | (32.8) | -67.6% |
