Below is the list of the 5 Stocks Dumb Money’s Steve Cohen Is Betting On Now. For a detailed discussion about what Dumb Money’s Steve Cohen please see 15 Stocks Dumb Money’s Steve Cohen Is Betting On Now.
5. T-Mobile US, Inc. (NASDAQ:TMUS)
Value of Point72 Asset Management’s 13F Position: $356 million
Number of Hedge Fund Shareholders: 89
Dumb Money’s Steve Cohen firm lifted his stake in T-Mobile US, Inc. (NASDAQ:TMUS) by 49% during the second quarter to $356 million. Despite strong financial and operational performance, the company’s share price has underperformed so far in 2023. The company recently authorised an additional $19 billion in share buybacks, adding to its current $14 billion programme. Furthermore, the company declared its first dividend, totalling approximately $750M in the fourth quarter. The company expects to pay about $3 billion in total dividends in 2024, with prospects of increasing dividend payments by about 10% per year.
T-Mobile US, Inc. (NASDAQ:TMUS) was in 89 hedge fund portfolios as of the end of the second quarter compared to 90 positions in the previous quarter.
4. Adobe Inc. (NASDAQ:ADBE)
Value of Point72 Asset Management’s 13F Position: $370 million
Number of Hedge Fund Shareholders: 113
Because billionaire Steve Cohen is bullish on AI, his firm increased its stake in Adobe Inc. (NASDAQ:ADBE) by 52% during the second quarter. Point72 has likely profited from its investment as the company’s stock has surged over 50% this year. In an earnings call, CEO Shantanu Narayen stated that innovations across its product portfolio are ushering in a new era of AI-enhanced creativity around the world. Adobe also outperformed revenue and earnings expectations for the June quarter by $22 million and $0.12 per share, respectively.
Adobe has recently seen an increase in investor interest. It was in 113 hedge fund portfolios as of the end of the second quarter, compared to 100 positions in the previous quarter.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Value of Point72 Asset Management’s 13F Position: $396 million
Number of Hedge Fund Shareholders: 283
During the second quarter, Point72 Asset Management sold 25% of its stake in Amazon.com, Inc. (NASDAQ:AMZN) to capitalize on the strong share price uptrend. Despite this, Amazon is ranked third largest holding in the list of 15 stocks Dumb Money’s Steve Cohen is betting on now. Year to date, shares of the world’s largest e-commerce company have climbed 47%.
In the second quarter investor letter, Diamond Hill Capital, an investment management company, expressed confidence in Amazon. Here is what the firm stated:
“Among our top contributors were insurance company American International Group (AIG), auto retailer CarMax and global online retailer Amazon.com, Inc. (NASDAQ:AMZN).
Amazon’s management team has been working to improve retail profitability, and Q1 results showed progress. In the case of Amazon’s web services (AWS), the market has shifted its focus from where growth will bottom in the near term to how AI can help accelerate the adoption of public cloud services in the future. We believe Amazon’s competitive advantages will continue to grow and that the business has the potential to grow faster than the overall economy in the coming years.”
2. Microsoft Corporation (NASDAQ:MSFT)
Value of Point72 Asset Management’s 13F Position: $620 million
Number of Hedge Fund Shareholders: 310
Microsoft Corporation (NASDAQ:MSFT) is one of the companies that will benefit greatly from increased demand for AI. Microsoft’s total investment in OpenAI has risen to $13 billion. OpenAI created ChatGPT, a chatbot that became popular due to its ability to craft human-like responses. Shares of Microsoft rallied 33% year to date.
The number of hedge fund positions in the company increased to 310 in the second quarter, up from 293 in the previous quarter. Dumb Money’s Steve Cohen increased his position in the company by 306% to $620 million in the second quarter.
1. NVIDIA Corporation (NASDAQ:NVDA)
Value of Point72 Asset Management’s 13F Position: $695 million
Number of Hedge Fund Shareholders: 178
NVIDIA Corporation (NASDAQ:NVDA) stands to benefit the most from AI demand because its chips are best suited for powering AI products in data centres and other areas. ChatGPT is also powered by NVIDIA chips. With a $695 million stake, NVIDIA Corporation (NASDAQ:NVDA) is Point72 Asset Management’s largest holding. The company earned $6 billion in profits from the AI boom in the June quarter. Its revenue of $13.5 billion more than doubled compared to the past year’s period due to robust demand for AI. Nvidia also expects its revenue to exceed $16 billion in the September quarter, topping analyst consensus of $12.59 billion.
In the second quarter investor letter, Harding Loevner, an asset management company, explained why NVIDIA stock soared sharply. Here is what the firm stated
NVIDIA Corporation (NASDAQ:NVDA) has been the biggest beneficiary this year in terms of its stock run and projected revenue gains. More companies- including, perhaps, some not yet in existence-will certainly join the ranks over time.
In the meantime, NVIDIA has emerged as the unrivaled global leader in providing the technologies at the center of the Al arms race. NVIDIA’s competitive advantage is the result of investments that began two decades ago, when it recognized an early opportunity to repurpose its video-game graphics chips for the heavy-load computing done in scientific research. This led management to expand the GPU business. It also spent years and significant resources developing a free software platform that’s exclusive to its chips called CUDA that allows developers to easily program its GPUs for a variety of computationally intensive applications. Researchers then began using both NVIDIA’s chips and CUDA to train the human-brain-inspired neural networks that power Al models.
Now, due to an explosion of demand related to generative Al and LLMs from across its customer base, NVIDIA projects that data-center revenue for its fiscal second quarter ending in July will surge to US$11 billion. Not only is that more than double last quarter’s total, but the forecast also shattered the average analyst estimate that called for about US$7 billion. Taking advantage of the stock’s meteoric rise, we reduced our holding (it has risen tenfold since we first purchased in 2018)…” (Click here to read the full text)
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