Abacus FCF Advisors Cuts Stake in NVIDIA Amid AI Boom

NVIDIA Corporation (NASDAQ:NVDA) has been a major beneficiary of the growing demand for artificial intelligence (AI) and its related technologies. Abacus FCF Advisors LLC, an institutional investor, recently disclosed that it had reduced its holdings in NVIDIA by 6% in the second quarter.

The firm owned approximately 117,320 shares of NVIDIA's stock after selling 7,472 shares during the period. This represents about 4.3% of Abacus FCF Advisors LLC's total holdings and makes NVIDIA its second-largest position.

NVIDIA's valuation has been driven by its dominance in the AI hardware market, with analysts estimating that it could generate $401 billion in hyperscaler revenue in 2027. The company's recent announcement of a $150 billion buyback authorization has also lifted investor sentiment and provided a potential source of per-share earnings support.

However, some investors have expressed caution regarding the stock's valuation and market concentration, which leaves it sensitive to interest rates, economic data, and shifts in institutional positioning. Export-control concerns and the possibility of circular transactions related to AI infrastructure financing also pose risks to NVIDIA's business.