Sell Nvidia! Soros comrade Druckenmiller leads, Soros Fund clears its position.

The 13F filing released on Wednesday revealed that Stanley Druckenmiller's family office, Duquesne Family Office, a billionaire, legendary investor, and former colleague of Soros, reduced its position in Nvidia in the third quarter ending September 30. This is the first time the company has disclosed a reduction in holdings of the major beneficiary of the AI boom this year.

Specifically, Druckenmiller sold approximately 75,000 shares of Nvidia stock worth about $37.2 million in the third quarter. As of September 30, Nvidia remained the largest holding of Druckenmiller's family office, with a market value of $380.5 million.

Druckenmiller's other major holdings include South Korean e-commerce giant Coupang and Microsoft. Microsoft is also a major beneficiary of the current AI boom, with its investment in OpenAI fueling this year's AI frenzy. In the third quarter, Druckenmiller increased his holdings of Alphabet-C parent company Alphabet by approximately $110 million.

A few months ago, Druckenmiller spoke out in support of AI multiple times. He stated that AI will continue to exist and can be as innovative as the internet. Druckenmiller expects to hold Nvidia for several years. "Unlike cryptocurrencies, I believe AI is real. If my judgment on AI is correct, I can hold Nvidia for two to three years or even longer, not just ten months."

The same 13F filing also revealed that Soros Fund Management exited its investment in Nvidia in the third quarter, selling stocks worth $4.9 million. In addition, it sold its stake in electric vehicle company Rivian and increased its holdings of UK biotech company Abcam, with stocks worth over $100 million.

However, there are other well-known investors who increased their holdings in Nvidia. For example, billionaire investor and Appaloosa founder David Tepper made additional investments, increasing his bet on artificial intelligence.

On Wednesday, Nvidia's 10-day winning streak is expected to come to an end. After initially rising to nearly $500 following the release of PPI inflation cooling data, the stock later fell, dropping more than 2.5% during the trading session.

With the booming demand for artificial intelligence, Nvidia's high-end GPU demand has surged, driving the company's performance. Nvidia is set to announce its earnings report next week, and the market expects the company's revenue for this quarter to increase by 170%.

The lucrative profits in the GPU market have prompted other chip manufacturers such as AMD and Intel to enter the market and accelerate the launch of their own high-quality AI chips. The competition in the entire AI chip market is already quite fierce. This week, NVIDIA has made a major upgrade to its popular H100 GPU by launching the new AI chip H200. The H200 chip is equipped with the ability to use HBM3e high-bandwidth memory and integrates 141GB of memory. Its inference speed on Llama 2 is twice as fast as the H100, achieving a leap in performance. Analysts believe that NVIDIA's move is aimed at consolidating its dominant position in the AI computing market.

In addition to facing fierce competition in the industry, the market has also been paying attention to NVIDIA's business in China. The company has developed a new improved series of chips specifically for the Chinese market, including HGXH20, L20PCle, and L2PCle. According to The Paper, informed sources have revealed that the three latest chips are derived from the H100 chip. Multiple industry insiders have confirmed the authenticity of NVIDIA's improved chips. NVIDIA is expected to announce the news as early as this month, and domestic manufacturers are expected to receive the products in the coming days.