Jonah Cheng, founder of a tech-focused hedge fund that saw 42% returns last year, has sold all his Nvidia shares. Cheng, who previously lauded Nvidia as his best-ever pick, cites concerns about potential delays with the GB200 racks, inventory risks, stagnant earnings forecasts, and increasing competition from custom-designed chips. He also expressed broader doubts regarding cloud computing companies' spending pace.
Despite Nvidia's impressive 1400% stock surge over five years and a $3.5 trillion market capitalisation, Cheng's decision reflects emerging skepticism among some investors. While analysts overwhelmingly favour the stock, worries about slowing AI budgets in 2026 have surfaced. Cheng's fund, Captain Global Fund, manages approximately $100 million in assets. He emphasises the importance of selling when necessary, regardless of past gains.
