The Big Reveal of 13F: Why Billionaires Are Fleeing Palantir but Frenziedly Buying Nvidia?

Question

At the end of each quarter, Wall Street pros are required to submit Form 13F to the SEC. This document serves as a “Transaction History” for institutional investors and is considered the most accurate barometer. Recent data shows that a silent transfer of funds is taking place: top investors are selling data analytics company Palantir (PLTR) and pouring real money into chip giant Nvidia (NVDA).

Who is reducing their holdings in Palantir?

Citadel (under Ken Griffin) sold 639,000 shares in the second quarter, directly cutting 48% of its holdings. Interestingly, this institution also bought put options for Palantir, which is a typical “insurance-style” retreat—betting that it will continue to fall.

Duquesne Family Office is even more ruthless — holding 769,000 shares at the beginning of the year, they completely sold out by the end of the year. This guy is known for short-term trading in Palantir, and this time he really ran.

Bridgewater (founded by Dalio) has continuously reduced its holdings throughout the year, with a complete liquidation of positions by Q1 2025, and has not looked back since.

How's it going with Nvidia?

Data speaks: From the launch of OpenAI (November 2022) to Nvidia's stock split (June 2024), NVDA has risen 620%. After the split, it hasn't stopped and has risen another 55%. This growth rate seems crazy, but people are still buying:

Coatue Management (Philippe Laffont) increased its holdings in Nvidia by 34% in Q2, purchasing 2.94 million shares.

Citadel is even more outrageous, purchasing 6.51 million shares in one go, with a position increase of 414%!

Valuation is the real answer

Just look at this pair of data to understand:

NVIDIA: PS ratio 28, dynamic PE 42. Although the market capitalization has reached a historic high (the most valuable company in the world), the valuation has actually declined compared to the AI boom period. Implication: there is still room for growth.

Palantir: Valuation multiples are continuously rising, and the market is excessively pricing in optimistic expectations. In other words: the future has already been overdrawn.

This is why the smart money is making this switch – they are betting that investments in AI infrastructure + robotics + autonomous driving, these trillion-dollar markets, are far from being fully reflected in NVIDIA's stock price.

Bottom line

The direction of capital flow is very clear: taking profits from cold stocks and bottom-fishing for undervalued stocks. Although Palantir can also benefit from AI, the current price has already buried risks. Nvidia may be expensive, but there are reasons for its high price.