News: A secretive US hedge fund has likely notched a $5 billion gain on Nvidia stock this year as the AI boom rages on

An undisclosed hedge fund in the United States is estimated to have made a $5 billion profit from its investment in Nvidia, capitalizing on the chipmaker's remarkable stock rally. Regulatory filings reveal that Jennison Associates held around 23 million Nvidia shares at the end of last year, and the value of this position surged from $3.4 billion to $6.3 billion in the first quarter as Nvidia's stock price soared. With Thursday's closing price, the stake would be worth an astonishing $8.6 billion. Jennison's nearly 1% stake in Nvidia positions it as one of the company's top 10 shareholders. Nvidia constitutes a significant portion of Jennison's portfolio, accounting for 3.5% of its approximately $100 billion US stock portfolio at the end of December and 5.8% at the end of March. Although Jennison maintains a low profile and rarely engages with the media, it has held Nvidia shares intermittently since at least the fourth quarter of 2001.

The remarkable surge in Nvidia's stock price this year, around 160%, is driven by investor optimism regarding the company's role in the artificial intelligence boom. Jennison, with offices in New York and Boston, has a substantial focus on Big Tech, with notable holdings in Microsoft, Apple, Amazon, and Tesla. However, it is important to note that portfolio updates offer only a snapshot of a firm's holdings on a specific day and do not account for various factors such as overseas-listed stocks, private investments, non-stock assets, and short-selling activities. Therefore, there is a possibility that Jennison may have adjusted its Nvidia stake since the end of March, or gains on paper might have been offset by hedges or losses in other parts of its portfolio.