Steve Cohen’s Point72 Asset Management is on track to make a $100 million profit on Nvidia stock in just two months, thanks to the continued surge of the artificial intelligence (AI) industry. The hedge fund purchased 981,000 Nvidia shares worth $272 million in Q1 and the stake is now worth $382 million due to the recent spike in Nvidia’s stock price. Reports suggest that Cohen’s team is yet to make any moves on the position, which ranked among Point72’s top 10 holdings, excluding options, on 31 March.
Nvidia’s microchips are expected to play a significant role in the advancement of the AI industry. As a result, high-profile investors, including Stanley Druckenmiller’s Duquesne Family Office, are investing heavily in the semiconductor giant. Duquesne Family Office recently raised its stake in the company by 36% to nearly 800 million shares.
Steve Cohen, the owner of New York Mets, recently urged investors to explore the possibilities of the expanding AI industry. He predicted that it would create new employment opportunities, as well as eliminate existing jobs. In his opinion, AI is the big wave that should not be missed.
Nvidia’s stock price has grown by over 160% this year, whilst its market capitalisation has increased to almost $1 trillion. The company is now more valuable than Tesla, Meta and Berkshire Hathaway. Nvidia’s microchips are used for self-driving technology and language tools, amongst other things, and investors predict that they will continue to benefit from the rapid growth of the AI industry.
