Wall Street's "Smart Money": Buying Nvidia and AMD like crazy, but selling Alibaba and JD.com!

In the first three months of this year, smart money on Wall Street poured into the semiconductor industry, but there was no consensus on Chinese concept stocks.

Adding to semiconductors, reducing Microsoft

Ray Dalio's Bridgewater Associates is the largest hedge fund in the United States, managing over $150 billion in assets, and has increased its positions in Broadcom (AVGO) and Lam Research (LRCH). 13-F filings show that the company has also increased its holdings in Microsoft.

Semiconductor manufacturers will benefit from the AI boom, as artificial intelligence technology requires a lot of computing power.

Bloomberg's summary of all 13-F filings for the first quarter shows that investors bought 38 million shares of AMD stock in the first quarter, increasing their total position by 5%. They also bought 27 million shares of Nvidia stock, increasing their total holdings by 2.4% from the previous quarter.

Investors seem less enthusiastic about Microsoft, perhaps because the stock has risen 30% this year.

13-F filings show that hedge funds reduced their Microsoft holdings by 22 million shares in the first quarter, although their total holdings remained high at 3.7 billion shares.

Wall Street has different opinions on Chinese concept stocks

Hedge funds also have different views on Chinese concept stocks. Michael Burry, the prototype for "The Big Short," increased his holdings in JD.com and Alibaba.

Burry's Scion Asset Management purchased these two stocks for the first time at the end of 2022, and they are currently the largest holdings in his stock portfolio, accounting for 20% of his total assets.

Since the beginning of this year, Alibaba's stock price has fallen by 3%, and JD.com's stock price has fallen by one-third.

But many of Burry's peers are not as optimistic as he is.

Bloomberg data shows that all investors' 13-F filings show that more than 20 million shares of Alibaba were sold in the first quarter. As of the end of last year, this accounted for nearly 7% of its total holdings.

These investors also sold 5 million shares of JD.com stock, a decrease of about 3% from the end of December last year.