Citadel and DE Shaw Slash Nvidia Holdings Ahead of Market Rout

Background

Hedge funds Citadel and DE Shaw have significantly reduced their holdings in Nvidia Corporation (NVDA) before the market downturn this month.

WEB DE Shaw more than halved its holding to 14bn worth of shares by the end of June.

WEB For example Citadel founder Ken Griffin slashed his hedge funds position in Nvidia by nearly 68 in Q1.

Reasons for the Sale

The reasons behind the sale are not entirely clear, but some analysts speculate that the funds may have been concerned about the company’s valuations and long-term prospects.

WEB Nvidias market cap was about 31 trillion on Friday lower than Apple Inc.

WEB Nvidias outlook and its latest quarterly results show the artificial intelligence boom that has catapulted the chip.

Market Impact

The news of the sales caused Nvidia's stock price to drop significantly in premarket trading on Monday.

WEB Citadel and DE Shaw slashed Nvidia holdings ahead of market rout US stocks rally as strong retail sales raise hopes..

Conclusion

The sale of Nvidia shares by Citadel and DE Shaw is a noteworthy event that may have implications for the company's future performance.

It is important to note that these are just speculations and the real reasons may be different.