By George Glover
Nvidia is in a bit of a rut.
While the Magnificent Seven Big Tech stock went on a tear over the first half of 2024, it's struggled since then. Its shares have slid 12% during the past three months, dragged down by a fear among investors that the surge in demand for its artificial intelligence chips might be losing momentum.
Underwhelming sales guidance, worries about the health of the U.S. economy, and stocks' tendency to struggle in September have all added to the sense of gloom surrounding the shares.
And some of the country's best-known investment firms have been summing up the pessimism.
Fidelity has dumped 232 million Nvidia shares this year, or 19% of its holdings, according to an Investors Business Daily analysis of S&P Global Market Intelligence data. That position would be worth a whopping $24.7 billion as of Monday's closing bell, although it's unknown when the asset manager started selling.
GQG Partners, T. Rowe Price, and Baillie Gifford have all also sold more than 50 million shares this year, according to the analysis, while Citadel Advisors has trimmed its stake by 93%.
Nvidia CEO Jensen Huang has also been unloading shares, according to Securities and Exchange Commission filings -- although he's downsized his position by a much less dramatic 0.5% in 2024. Huang remains the semiconductor's largest shareholder, with a 3.5% stake worth about $91 billion.
Shares were up 0.2% to $106.70 ahead of Tuesday's opening bell, while futures for the benchmark S&P 500 index were trading flat.
Fellow chip maker Advanced Micro Devices slipped 0.1%, while Broadcom dropped 0.4% and Qualcomm fell 0.2%.
Write to George Glover at george.glover@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
September 10, 2024 07:22 ET (11:22 GMT)
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