Jeff Yass is a billionaire investor best known for co-founding Susquehanna International Group (SIG). SIG is a powerhouse fund boasting nearly $60 billion in assets under management.
According to SIG’s latest 13F filing, the fund sold approximately 5.6 million shares in semiconductor darling Nvidia (NASDAQ: NVDA) during the third quarter — reducing its stake by 29%. At the same time, Yass and his constituents increased SIG’s position in Micron Technology (NASDAQ: MU), scooping up 2.2 million shares and increasing the fund’s exposure by 46%.
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Below, I’m going to detail why I like this swap and see Yass’ decision as a wise choice. Let’s dig in.
The table below illustrates SIG’s position in Nvidia stock over the past year:
|
Category |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
|---|---|---|---|---|---|
|
Shares owned (in millions) |
43.6 |
31.9 |
72 |
19.5 |
13.9 |
Data source: Hedge Follow.
With the exception of a major purchase during the first quarter, SIG has been a net seller of Nvidia stock over the past 12 months. In particular, the fund has done quite a bit of trimming to its Nvidia stake between the last two quarters.
It’s well-known by now that Nvidia is the king of the semiconductor realm. Moreover, with its upcoming next-generation Blackwell GPU architecture on the verge of launching, how does it make sense to sell the stock right now?
To me, the chart above says it all. Over the last two years, shares of Nvidia have risen 786% and the company is now the most valuable in the world (as of intra-day Nov. 22).
Simply put, even with the tailwinds from Blackwell and ongoing demand for GPUs, Nvidia stock is highly unlikely to rise by this magnitude again anytime soon (if ever). On top of that, many of Nvidia’s own customers including Microsoft, Amazon, Meta Platforms, and Alphabet, are beginning to build their own chip ware. Candidly, I think the long-term narrative surrounding Nvidia is pretty murky.
The table below illustrates SIG’s position in Micron stock over the past year:
|
Category |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
|---|---|---|---|---|---|
|
Shares owned (in millions) |
1.0 |
1.7 |
1.3 |
4.8 |
6.9 |
Data source: Hedge Follow.
It’s interesting that as SIG trimmed its position in Nvidia, the firm has quietly increased its stake in Micron by nearly sevenfold. And in a lot of ways, I think this is actually a pretty savvy move.
Micron’s position in the chip market is unique, as the company specializes in memory and storage solutions. Right now, one of the most important variables needed to build large language models (LLMs) and develop generative AI applications is access to data.
