Whale Rock Just Dumped Most of Its Nvidia Stake

Whale Rock Capital Management made substantial changes to its portfolio in the second quarter, notably trimming its Nvidia (NVDA) investment by 64%. The hedge fund decreased its shareholding in Nvidia from around 1.04 million shares to 377,204 shares. Simultaneously, Whale Rock boosted its Advanced Micro Devices (AMD) holdings from 69,211 shares to roughly 1.51 million shares.

This reshuffling of AI semiconductor investments indicates a strategic shift rather than an outright retreat from the AI sector. Nvidia, a key player in AI infrastructure, reported record revenue of $81.6 billion in the first quarter of fiscal 2027, reflecting an 85% year-over-year increase. Despite this robust performance, the reduction in Nvidia shares by Whale Rock raises questions about the reasons behind the decision.