Citadel Shifts AI Bets as Amazon and Microsoft Shine
Citadel founder and CEO Ken Griffin is adjusting his artificial intelligence (AI) investments. In the second quarter, Citadel sold shares in top AI companies Nvidia, Broadcom, and Micron Technology. The hedge fund reduced its exposure to Nvidia by 36% after selling 6.8 million shares. Citadel also sold nearly 11% of its Broadcom stock and 4 million shares of Micron Technology.
However, Griffin added to his position in Amazon Web Services (AWS) and Microsoft, both of which are top five holdings in Citadel's portfolio. AWS recorded its fastest growth in more than four years, with revenue topping $200 billion in the quarter. Microsoft reported strong results as well, generating $19.6 billion in free cash flow.
The success of Amazon and Microsoft is seen as a demonstration of the market rewarding companies that are showing results from their AI spending. Citadel's Q2 purchases in these two stocks have paid off nicely, with Amazon up 15% and Microsoft up 27% since reporting earnings in late July.