Ackman Cuts Alphabet Stake 95% as Nvidia Forecast Raises Google Cloud Competition
Pershing Square cut its Alphabet stake by 95% in Q1 2025, redeploying capital into Microsoft and Amazon while affirming long-term conviction in Google's prospects. Nvidia forecast Q2 data-center revenue of $91 billion and said it will grow faster than hyperscale customers like Google Cloud, underscoring intensified infrastructure competition for Alphabet.
1. Pershing Square’s Stake Reduction
Pershing Square Capital Management slashed its Alphabet holding by 95% during Q1 2025, reallocating proceeds into Microsoft and Amazon at attractive valuations. Bill Ackman’s firm characterized the move as a portfolio rebalance rather than a bearish bet on Google and stated continued long-term bullishness given Alphabet’s leadership in AI and digital advertising.
2. Implications of Nvidia’s Growth Outlook for Google Cloud
Nvidia projected second-quarter data-center revenue of $91 billion and forecast growth exceeding that of hyperscale clients such as Google Cloud, driven by demand for its new Vera processors. CEO Jensen Huang highlighted expansion among smaller AI-focused cloud providers, signaling heightened competition for Alphabet’s cloud infrastructure business.