Billionaire Steven Cohen Sold 87% of Point72's Stake in Nvidia and Is Piling Into This Supercharged Stock-Split Stock

Nvidia and Point72 Asset Management - Steven Cohen's Point72 Asset Management significantly reduced its stake in Nvidia by 87%, from 16,457,320 shares at the end of September 2023 to 2,115,018 shares by June 30, 2024 [3] - Nvidia's stock surged 822% since the start of 2023, suggesting Cohen's selling may be profit-taking or asset reallocation [3] - Nvidia faces growing competition from external competitors introducing new AI-GPUs and internal competition from its top customers (Microsoft, Meta Platforms, Amazon, Alphabet) developing their own AI-GPUs [4] - Historical trends of technology bubbles and regulatory restrictions on Nvidia's AI-GPU exports to China add to the company's challenges [5] Chipotle Mexican Grill and Point72 Asset Management - Point72 Asset Management increased its stake in Chipotle Mexican Grill by 446% during Q2 2024, purchasing 1,458,700 shares, bringing its total holdings to 1,785,950 shares [7] - Chipotle completed a historic 50-for-1 stock split on June 25, 2024, one of the largest in NYSE history [7] - Chipotle's competitive advantages include its commitment to responsibly raised meats, locally sourced vegetables, and a limited menu that enhances operational efficiency [8] - The introduction of Chipotlanes (drive-thru lanes for mobile orders) has significantly boosted sales and expanded the brand's appeal to Generation Z [9] - Despite its strong performance, Chipotle's forward P/E ratio of 45 as of October 11 raises concerns about its valuation, especially given its reliance on higher prices rather than increased order volume for growth [9]