Do you think Nvidia CEO Jen-Hsun Huang will aggressively dump shares of the S&P 500 company this year? Just look at what Fidelity and other giant investors are doing.
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Seven holders of Nvidia (NVDA) stocks, including Fidelity, GQG Partners and T. Rowe Prize (TROW), have each sold more than 30 million shares of the AI giant this year, according to an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. No other investor, including Huang, has increased their holdings of S&P 500 stocks anywhere near that of these investors.
And these are huge sales that represent a significant portion of these giant investors’ holdings. The sales are happening this year as shares of the AI giant have lost about a quarter of their value since their June 18 peak.
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Much has been made of Huang’s Nvidia stock sales this year. But he’s far from the biggest seller.
The AI giant’s founder has cut his position by 4.4 million shares this year, S&P Global Market Intelligence says. That amounts to a reduction of nearly $450 million this year alone. But it’s also a minuscule reduction for the company’s CEO. Huang’s share count has fallen just 0.5% this year. He’s still the fifth-largest owner of Nvidia’s S&P 500 stock, with 861 million shares, or 3.5% of the company.
Fidelity’s moves are much more dramatic. Fidelity sold more than 232 million shares of Nvidia this year. That’s a 19.2% drop this year alone. Now Fidelity is just the fourth-largest holder of Nvidia stock, just ahead of Huang. Fidelity now owns 976.9 million shares, or about 4% of the company.
Major investors sell Nvidia from S&P 500
But Fidelity has a lot of company. GQG Partners sold more than 63 million shares — a 45.6% reduction in its position this year alone. And another value-oriented investment firm, T. Rowe Price, sold more than 58 million shares this year, reducing its stake by more than 11%.
Where are all these sold shares going? The giant ETF and index fund providers, many of which have been forced to buy more Nvidia to meet their market-value-weighted index orders, are piling up shares. Vanguard, the big daddy of index investing, increased its position by 0.5% in the most recent quarter. 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 stock.
Similarly, iShares owner BlackRock increased its position in S&P 500 stocks by 0.9% in the most recent quarter. It now owns 1.8 billion shares, or 7.5% of the outstanding shares.
Time will tell whether index investors will let active investors who sell work to their advantage.
Biggest Reductions in Nvidia Shareholdings
Percentage change in stocks this year
| Holder | Last 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 Associations | 107.0 | (36.2) | -25.3% |
| Citadel Advisors | 2.4 | (33.9) | -93.3% |
| Edgewood Management | 15.7 | (32.8) | -67.6% |
