Bridgewater dumps 27% of its Nvidia stake and loads up on AMD in AI chip portfolio shuffle

Bridgewater Associates, the world’s largest hedge fund with roughly $97B in assets under management, sold 1.8 million shares of Nvidia during the third quarter of 2024. That’s a 27% reduction in its position. In the same quarter, it picked up 364,292 additional shares of AMD. The move doesn’t mean Ray Dalio’s shop is giving up on Nvidia entirely. Bridgewater still held 4.8 million Nvidia shares at the end of Q3, dwarfing its 1.5 million AMD position. Reading the portfolio tea leaves Bridgewater didn’t stop at AMD. The fund also added 1.45 million shares of Super Micro Computer and increased its stake in Palantir Technologies during the same period. AMD has been positioning itself as the performance-per-dollar alternative, targeting customers who want serious AI compute without paying the Nvidia premium. AMD’s mixed signals AMD’s own moves have sent somewhat contradictory signals to the market. The company announced a 4% headcount reduction in mid-November 2024, cutting roughly 1,040 employees. Management framed it as aligning operational resources with growth strategies. Nvidia’s CUDA software ecosystem remains a formidable moat, creating switching costs that make enterprise custom...