Nvidia Stock Slips. Stanley Druckenmiller Has Cut His Stake in the Chip Maker.

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Nvidia stock was edging down early on Tuesday. Billionaire investor Stanley Druckenmiller has trimmed his investment in the chip maker.

Nvidia

shares were down 2.7% at $896.94 in morning trading. The stock closed up 3.8% on Monday. 

Druckenmiller said his firm had cut its stake in Nvidia, in a CNBC interview, after first investing in the chip maker in late 2022 and then substantially increasing the position.

“We did cut that and a lot of other positions in late March. I just need a break. We’ve had a hell of a run. A lot of what we recognized has become recognized by the marketplace now.” Druckenmiller said.

Nvidia stock had risen above $900 in the wake of earnings reports from a series of major technology companies including

Microsoft
,

Amazon.com

and

Meta Platforms

which included commitments to invest in artificial-intelligence infrastructure.

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Those investments are generally good news for AI chip maker Nvidia but the Big Tech companies are also developing in-house chips to reduce the cost of AI development. The latest company to follow that path is

Apple
,

which has been developing its own AI chips for data-center servers, The Wall Street Journal reported late Monday.

Apple’s chips are unlikely to directly rival Nvidia’s with their focus being more on inference—the process of generating answers or results from AI model—rather than training, according to The Journal. However, it’s a reminder that the AI chip market is likely to diversify over time as demand moves from training to inference.

Among other chip makers,

Advanced Micro Devices

was down 0.8% and

Intel

was up 0.7% in morning trading.

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The trend for Big Tech companies to make in-house chips reinforces the need for Nvidia to seek out other markets. On Tuesday, U.K. self-driving start-up Wayve Technologies said Nvidia was a new investor in the company as it raised more than $1.0 billion in a funding round.

Nvidia shares have risen 86% this year to date through to Monday’s close. That compares with a 8.6% rise in the

S&P 500

index and a 8.9% rise in the

Nasdaq Composite Index

over the same period. 

Write to Adam Clark at adam.clark@barrons.com



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