Billionaire Laffont sold Nvidia in 12 of last 13 quarters—slashing stake 88%

Philippe Laffont's sustained selling of Nvidia over the past three years stands out precisely because Nvidia's product dominance in AI-accelerated data centers is widely acknowledged on Wall Street. Since Q1 2023, when his stake peaked, Nvidia's share price has jumped tenfold—a trajectory that would ordinarily cement confidence in a long-term holding. Yet Laffont has methodically reduced exposure in nearly every subsequent quarter, suggesting his concerns run deeper than harvesting gains from a winning bet.

The body identifies two structural headwinds that likely motivate this selling. First, Nvidia's largest customers—cloud providers and hyperscalers—are now engineering their own proprietary AI chips. These in-house alternatives are not only cheaper and more accessible than Nvidia's offerings but also begin to fill data center capacity that would otherwise demand Nvidia hardware, thereby reducing the GPU shortage that has historically supported Nvidia's pricing power. Second, the article invokes a 30-year historical pattern: every transformative technology has experienced an early bubble-bursting event, driven by investor overestimation of adoption speed and optimization timelines. If this pattern holds, AI may not be exempt, and a correction could follow the current enthusiasm.

Together, these dynamics suggest Laffont is positioning ahead of potential headwinds that the broader market has not yet fully priced in. His continued selling despite Nvidia's valuation of $5.45 trillion implies skepticism about whether the company can maintain its current valuation amid tightening competitive dynamics and a possible AI-adoption plateau.