Halvorsen Buys Nvidia, Tesla, and Meta; Dumps Alphabet

Ole Andreas Halvorsen, the prominent investor behind Viking Global Investors, has made a series of strategic moves in the AI stock market, purchasing significant stakes in Nvidia, Tesla, and Meta while divesting from Alphabet. According to a recent 13F filing with the Securities and Exchange Commission, these changes reflect Halvorsen’s focus on generative AI technologies and growing concerns about economic stability.

The filing, submitted by the May 15 deadline, details trading activity for the quarter ending in March. Halvorsen, who manages approximately $31.5 billion in assets under management (AUM) across 91 holdings, has concentrated his portfolio on his top investment ideas. Viking Global’s average holding time of just over 17 months suggests a proactive approach to trading, aimed at capitalizing on short-term opportunities while locking in profits.

AI Stock Purchases

During the first quarter, Viking Global approved the purchase of three key AI stocks. The firm acquired new stakes in Meta Platforms and Tesla, while significantly increasing its position in Nvidia by approximately 222% compared to the previous quarter. This move aligns with PwC’s estimate that AI could contribute a $15.7 trillion boost to the global economy, highlighting the growing importance of AI technologies across industries.

Nvidia’s Hopper (H100) and Blackwell graphics processing units (GPUs) are leading choices for businesses seeking to implement generative AI solutions. Meta has integrated generative AI into its advertising platform, enhancing its offerings for marketers. Similarly, Tesla’s full self-driving software relies heavily on AI, providing advanced driver assistance systems that are central to its innovative vehicles.

However, these companies face challenges. Nvidia’s gross margin has been declining for the past year, while Meta’s ad-driven business model is closely tied to global economic conditions. Tesla’s electric vehicle (EV) margins have also declined due to increasing competitive pressures in the market.

Alphabet Sale

In addition to the AI stock purchases, Halvorsen oversaw the sale of 22 stocks during the quarter, including a complete divestment from Alphabet. Viking Global sold all 3,661,375 Class A shares of Alphabet, which had been the fund’s 14th-largest holding at the end of 2024. Alphabet, known for its dominance in internet search and advertising, was the cheapest of the Magnificent Seven stocks based on its forward price-to-earnings (P/E) ratio.

Reasons for the Sale

Several factors likely influenced Halvorsen’s decision to sell Alphabet. One key concern is the uncertainty surrounding the use of large language models (LLMs) in search technologies. Additionally, the U.S. Justice Department’s ongoing efforts to break up Alphabet by forcing the company to sell its Chrome browser and Android operating system have introduced regulatory risks.

Economic concerns also played a role. With approximately three-quarters of Alphabet’s net sales coming from advertising, the potential for a U.S. economic recession poses a significant threat. The initial first-quarter GDP report showed a 0.3% annual contraction, fueling fears of an impending recession. Despite these challenges, Google maintains a dominant 89% to 93% share of worldwide internet search, and Alphabet has substantial cash reserves to invest in AI solutions.

Future Outlook

Despite the sale of Alphabet, the potential rewards for investors in AI stocks like Nvidia, Tesla, and Meta appear to outweigh near-term risks. As AI continues to transform industries, companies at the forefront of this technology are positioned for significant growth. However, investors must remain cautious of economic headwinds and regulatory challenges that could impact the tech sector.

Halvorsen’s strategic investment decisions reflect a careful balance between capitalizing on emerging technologies and mitigating risks in a volatile market. As Viking Global continues to adjust its portfolio, the firm’s focus on AI and generative technologies is likely to shape its future investment strategies.