Billionaire Paul Tudor Jones Is Selling Microsoft Stock Hand Over Fist but Buying These “Magnificent Seven” Stocks

Billionaire philanthropist Paul Tudor Jones is an iconic figure on Wall Street and has been called “one of the pioneers of the modern-day hedge fund industry.” He runs Tudor Investment, the hedge fund he founded in 1980.

His biggest claim to fame was predicting Black Monday, the famed stock market crash of 1987. Less than a year after his call, the market plunged more than 22%, marking the worst single-day decline since the stock market crash of 1929. Jones shorted the market, reaping a 200% gain for his hedge fund. So when Jones talks, Wall Street listens.

The billionaire investor has been quite vocal about the vast potential for artificial intelligence (AI). “I do think the introduction of large language models [and] artificial intelligence is going to create a productivity boom that we’ve only seen a few times in the last 75 years,” Jones said.

The “Magnificent Seven” stocks all have AI in their DNA, so it isn’t surprising that some of these market leaders would be among Tudor’s top holdings. Interestingly, however, Jones just slashed his position in Microsoft (NASDAQ: MSFT), cutting its stake by 56%. Here are the AI-centric Magnificent Seven stocks he bought instead.

Image source: Getty Images.

1. Nvidia

No discussion about AI stocks would be complete without Nvidia (NASDAQ: NVDA), so it isn’t surprising that Tudor increased his position in the chipmaker. In the fourth quarter, Tudor Investment boosted its stake in Nvidia by a whopping 810%, increasing its stake to 132,000 shares worth roughly $121 million (as of Thursday’s market close). That makes Nvidia its third-largest position, at roughly 1% of the portfolio.

The chipmaker pioneered the graphics processing units (GPUs) that have become the gold standard for processing AI applications. Nvidia dominates the market in both machine learning — an earlier branch of AI — and the data centers where much of the AI processing occurs, boasting an estimated 95% market share in each. Nvidia’s long history underpinning AI made it the shoo-in to address the growing demand for generative AI.

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