Hedge Funds Back Nvidia-Powered AI Data Centers as Shares Fall 1.3% After $80B Buyback
Hedge fund managers at Sohn Hong Kong are targeting AI data centers like CoreWeave, powered by Nvidia chips, forecasting its annualized revenue to grow from $1 billion to $55 billion by 2028. Nvidia reported another blockbuster quarter with an $80 billion share buyback yet saw shares drop 1.3% afterhours on tempered guidance.
1. Hedge Fund AI Investment Themes
At the Sohn Hong Kong conference, hedge fund managers highlighted AI-linked data centers and semiconductor supply chains, favoring U.S.-based CoreWeave for its Nvidia-powered hardware and cloud capacity. CoreWeave’s annualized revenue is projected to surge from $1 billion to $55 billion by 2028, while other funds eyed PCB maker Compeq and infrastructure firm Kandenko as beneficiaries of AI-driven demand.
2. Nvidia’s Earnings Beat and Market Reaction
Nvidia delivered another quarter beating revenue and earnings expectations, coupled with an $80 billion share buyback program. Despite the strong results, shares fell 1.3% in afterhours trading as investors digested guidance viewed as cautious and engaged in profit-taking following the chipmaker’s recent rally.