Billionaires Shift Investments in Dow Jones Giants

Investment Strategy Shift: Billionaire investors are altering their stake in major tech stocks. Tepper sells Amazon for Nvidia, while Gates shifts from Microsoft to McDonald's seeking growth.

Date: 23-02-2025

AI Rating: 6

Investment Trends
Recent Form 13F filings reveal that notable investors like David Tepper and Bill Gates are rearranging their portfolios. Tepper reduced his stake in Amazon after a 166% rise in share price over the last year, indicating a strategic pivot toward Nvidia, which is growing faster in revenue. This might suggest a potential decrease in Amazon's stock price due to Tepper's reduced confidence.

Nvidia's Prospects
Nvidia's data center revenue saw a significant 112% year-over-year increase, bolstering its position as a key player within the AI market. Despite a recent downturn linked to an advanced AI model by China's DeepSeek that could impact near-term demand, analysts maintain a sales growth expectation of 51% for Nvidia, indicating strong long-term prospects. However, uncertainty surrounding data center spending could pose a risk to Nvidia’s high valuation.

Challenges and Opportunities for Microsoft
Bill Gates has been reducing his Microsoft holdings while investing in McDonald's. Although Microsoft experienced a 10% earnings growth, execution challenges, particularly within its Azure cloud services, raise apprehensions about future profitability. Gates' shift reflects a diversification strategy amidst these concerns.

McDonald's Recovery and Growth Strategy
McDonald's is emerging from challenges related to an E. coli outbreak and is anticipated to return to revenue and earnings growth of 2.5% and 8%, respectively. The company's high profit margins of 31% allow for steady dividend payments and expansion plans, which could positively impact its stock. This suggests investor confidence in McDonald's resilience during economic fluctuations.

Stocks: MSFT AMZN NVDA MCD