Watch This Key Price Level

Key Takeaways

• Chubb shares jumped more than 8% in late trade Wednesday evening after Warren Buffett’s Berkshire Hathaway revealed a $6.7 billion stake in the insurer.
• Buffett recently told shareholders that property-casualty insurance provides the core of Berkshire’s well-being and growth.
• Berkshire had been building its position in Chubb since 2023, but had not previously disclosed the stake after the SEC granted it permission to keep the holding confidential.
• A measured move in Chubb stock indicates a potential increase up to around $284.

Chubb (CB) shares climbed more than 8% in late trading Wednesday evening after a regulatory filing revealed that Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) has taken a sizeable stake in the Zurich-based insurer.

According to the filing, Berkshire’s stake of nearly 26 million shares in Chubb, one of the world’s largest publicly traded property-casualty insurers, had a market value of around $6.7 billion as of March 31, making it the conglomerate’s nineth largest holding.

Rationale Behind Berkshire’s Chubb Investment

Berkshire, which also holds GEICO and National Indemnity, among other insurers, has a heavy footprint in the insurance industry, with Buffett recently telling shareholders that “property-casualty insurance (“P/C”) provides the core of Berkshire’s well-being and growth.”

Insurance businesses fit the legendary investor’s “buy and hold” philosophy because they provide a steady source of capital that can be deployed into long-term investments.

Although Berkshire had been building its position in Chubb since 2023, it had not previously disclosed the stake after the Securities and Exchange Commission (SEC) granted the conglomerate’s request to keep the holding confidential. Institutional investors may want to withhold disclosing a position to avoid revealing ongoing patterns of buying and selling.

Where is the Chubb Stock Headed Next?

Since bottoming out in June last year, the Chubb share price has continued to track higher, with the trend gathering momentum after the 50-day moving average (MA) crossed above the 200-day MA to form a bullish golden cross signal. More recently, the stock has traded within as ascending triangle, a chart pattern indicating a continuation of the longer-term uptrend. 

Given the stock sits poised to climb to a record high following the Berkshire news, investors can use a measured move to forecast where the stock may be headed next. To do this, measure the distance of the start of the triangle in dollars, about $24, and add that amount to the pattern’s top trendline near $260. This implies a potential move to around $284. .

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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What You Need to Know

• Consumer prices rose 3.4% in April over 12 months, down from a 3.5% annual inflation rate in March, in line with expectations.
• It was the first report in four months not to show inflation running hotter than forecast.
• The downtick signaled inflation could be on a path back to the Federal Reserve’s target of a 2% annual rate.

Inflation edged down but stayed too hot for comfort according to a report on price increases that for the first time in months, didn’t deliver a nasty surprise.

The Consumer Price Index, a widely watched measure of inflation, rose 3.4% over the last 12 months, down from a  3.5% increase in March, the Bureau of Labor Statistics said Wednesday. On a monthly basis, the index rose 0.3% from March, down from a 0.4% monthly increase the previous month, with most of the inflation coming from increasing shelter and gasoline prices. 

The yearly measure was in line with forecasts, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal, and the monthly measure was below the 0.4% expected increase. It was the first report in four months that didn’t show inflation running hotter than expected—a fact that breathed some life into hopes that inflation is on a path back to the Federal Reserve’s goal of a 2% annual rate.

Some Relief in the Details

Another reason for optimism: “core” inflation, which excludes volatile food and energy prices, and is watched by experts as a sign of overall inflation trends, fell to a 3.6% annual increase from 3.8% in March, reaching its lowest since April 2021.

“Today’s numbers brought welcome signs of cooling price pressures, with the topline and core annual inflation rates slipping lower since last month,” Kayla Bruun, senior economist at Morning Consult, said in a commentary.

Significantly for household budgets, grocery prices fell 0.2% after staying flat for the previous two months, offering some relief to shoppers who have had to deal with elevated food prices since the pandemic hit. Prices for new and used vehicles also fell, continuing recent downward trends in both categories.

What Does This Mean For The Federal Reserve?

Wednesday’s inflation report is being closely scrutinized because of its implications for financial markets and interest rates for all kinds of loans. Officials at the Federal Reserve, who control the crucial fed funds rate, are looking for evidence of falling inflation before they’ll consider cutting the rate from its current high level. 

The central bank has held the rate at a 23-year high since July after ratcheting it up from near zero in March 2022 in an effort to subdue inflation. The fed funds rate influences interest rates on loans throughout the economy, including mortgages and credit cards, which are at or near their highest in decades. 

Inflation fell rapidly last year but the progress stalled in 2024 as price increases have stayed stubbornly high, putting pressure on household budgets and dimming hopes for Fed rate cuts anytime soon.

Financial markets are currently betting the Fed will begin rate cuts in September, a prospect bolstered by Wednesday’s inflation data. Chances for a September cut rose to 70% in the wake of the report from 65% the day before, according to the CME Group’s FedWatch tool, which forecasts rate movements based on fed funds futures trading data.

“The moderation in CPI in April is welcomed after a string of elevated readings in Q1 and keeps alive the prospect of the Fed starting to cut rates in September,” Kathy Bostjancic, chief economist at Nationwide, wrote in a commentary.

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Watch These Key Price Levels

Key Takeaways

• NYCB shares jumped nearly 6% in premarket trading Wednesday morning after the embattled bank said it has agreed to sell $5 billion of mortgage warehouse loans to JPMorgan Chase.
• The bank anticipates the deal will add 65 basis points to its common equity tier 1 capital ratio and boost its liquidity profile as the proceeds of the transaction will be reinvested into cash and securities.
• NYCB shares may run into selling pressure near the March 2023 swing low around $5.80 but could retest recent lows near $2.70 if the price falls below the 50-day moving average.

Shares in New York Community Bancorp (NYCB) jumped nearly 6% in premarket trading Wednesday after the embattled regional bank said late Tuesday that it had agreed to sell around $5 billion of mortgage warehouse loans to JPMorgan Chase (JPM) in a deal aimed at shoring up its liquidity and capital as it undergoes a turnaround to return to profitability.

NYCB, which expects to complete the sale in the third quarter, anticipates the deal will add 65 basis points to its common equity tier 1 (CET1) capital ratio, resulting in a pro-forma ratio of 10.8% as of March 31 this year, and boost its liquidity profile as the proceeds of the transaction will be reinvested into cash and securities.

The announcement of the sale comes several months after the bank disclosed it had sold $899 million of consumer loans in March and a commercial co-operative loan in late February.

“We are moving forward quickly to implement our strategic plan, which focuses on improving our capital, liquidity and loan-to-deposit metrics,” recently appointed NYCB Chief Executive Officer Joseph Otting said in the statement Tuesday.

Reducing Reliance on Commercial Real Estate Sector

Otting, who took the helm at the bank in April, plans on reducing NYCB’s exposure to New York’s commercial real estate sector, which has faced challenges from higher borrowing costs and lower occupancy, and turn it into a more diversified regional bank.

Cracks started appearing at the beleaguered regional bank in January, when it cut its dividend and ramped up its loan-loss provisions. Those developments, along with material weaknesses in internal controls, management changes, and a string of rating agency downgrades, prompted a group of investors led by former Treasury Secretary Steven Mnuchin to inject more than $1 billion into the lender to shore up its balance sheet.

Monitor These Chart Levels Amid Ongoing Volatility

NYCB shares continued to trend sharply lower for around three months after gapping down more than 37% in late January, with trading volumes remaining above average throughout the decline. More recently, the price has staged somewhat of a recovery, reclaiming the 50-day moving average (MA). 

If the stock continues to climb higher, investors should monitor the $5.80 level, an area on the chart where the price may run into selling pressure near the March 2023 swing low. However, if the shares fail to hold above the 50-day MA, watch for a possible retest of recent lows around $2.70.

NYCB shares were up 5.9% at $4.12 at around 7:00 a.m. ET Wednesday.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• Asset management company Bridgewater Associates nearly quintupled its position in AI hardware leader Nvidia in the first quarter, per the firm’s 13-F.
• Bridgewater, founded by billionaire Ray Dalio, ended the first quarter with 636.6 million shares of Nvidia worth about $582 billion as of Tuesday afternoon’s share price.
• The firm also invested in other AI hardware leaders, including Advanced Micro Devices and KLA.
• Bridgewater’s other major purchases in the first quarter were mostly in the tech space and include 525 million Class A shares of Alphabet, nearly 316 million shares of Apple, and 247 million shares of Meta Platforms.

Ray Dalio‘s Bridgewater Associates added more than 503 million shares of Nvidia (NVDA) during the first quarter of the year in tandem with stake increases in several other tech giants, according to the firm’s 13-F form filed Tuesday.

Big Investments in AI Leaders

Dalio’s asset management firm increased its Nvidia position to 636.6 million shares as of the end of the first quarter, up from 133 million shares at the end of 2023. As of Tuesday afternoon, if Bridgewater’s positioned is unchanged since the end of the first quarter, it is worth roughly $582 billion. Nvidia shares have climbed 85% year-to-date.

Nvidia is a major player in AI because of the popularity of its hardware products, and AI is one of the biggest investment trends of the year. Dalio’s firm also made big bets early in the year on other companies related to AI.

For example, Bridgewater entered a position in Advanced Micro Devices (AMD), another leading chipmaker, totaling 122.6 million shares as of the end of the quarter. It also significantly boosted its position in semiconductor and nanotechnology company KLA (KLAC), adding about 70 million shares for a total of 81.7 million by the end of March.

Focus on Tech Titans

Dalio made big bets on other tech firms that are poised to benefit from AI integration without providing AI hardware. Of these, the most notable shift was in Alphabet (GOOGL). Bridgewater bought almost 525 million Class A shares of Google’s parent company during the first quarter, bringing its position to 810.3 million shares by the end of that period. If that position remains intact as of now, it is worth about $139 billion as of this writing.

Bridgewater also added about 316 million shares of Apple (AAPL), 247 million shares of Meta Platforms (META), and 170 million shares of Microsoft (MSFT) in the first months of 2024. After those purchases, Bridgewater’s positions in Apple, Meta, and Microsoft would be worth approximately $59 billion, $227 billion, and $101 billion, respectively, if they remain unchanged as of Tuesday’s close.

Dalio also entered a 189-million-share position in Amazon.com (AMZN) in the first quarter.

Sales of Cisco, Coca-Cola, PDD

The first quarter wasn’t exclusively a buying spree for Bridgewater, as the firm also trimmed many of its existing positions and exited several others. Among the largest sell-offs in the first quarter were about 91 million shares of Cisco Systems (CSCO), roughly 87 million shares of Coca-Cola (KO), and 177 million shares of PDD Holdings (PDD).

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Tech stocks gained in intraday trading Tuesday, with the S&P 500 Information Technology Sector Index up 0.7% as of 2:30 p.m. ET Tuesday, while the broader S&P 500 was up 0.3%, and the tech-heavy Nasdaq rose 0.6%.

Alibaba Group (BABA) American depositary receipts (ADRs) tumbled after the Chinese e-commerce giant reported its profit plunged 86%, while BlackBerry (BB) shares took off as the cybersecurity firm benefited from the resurgence of the meme-stock craze that roiled the markets in early 2021. Shares of hydrogen technology firm Plug Power (PLUG) soared after getting a loan guarantee from the U.S. Department of Energy.

Alibaba ADRs Tumble as E-Commerce Giant’s Profit Drops on Investment Losses

Alibaba ADRs were nearly 7% lower at $78.77 following its financial report, which showed earnings sank 86% from year ago and missed analysts’ estimates. The Chinese e-commerce firm blamed the decline primarily on losses from its investments in publicly traded companies. Alibaba’s revenue rose more than expected, as all three of its divisions posted sales increases.

‘Roaring Kitty’s’ Return Raises Meme-Stock Excitement, Boosting BlackBerry

BlackBerry shares gained close to 11% to $3.44, advancing for a second straight session, as the stock got lifted by excitement about another meme-stock rally. Shares of other meme stocks including AMC Entertaiment (AMC) and GameStop (GME) exploded Monday after the first social media post in almost three years by a trader who goes by the name of “Roaring Kitty.” He was one of the leading drivers behind the meme-stock craze of 2021.

Plug Power Stock Soars on Conditional $1.66B Government Loan To Expand

Plug Power shares soared 24% to $3.59 after reporting it received a conditional loan of up to $1.66 billion from the Department of Energy to expand its green hydrogen production operations. The company said it would use the money to add six facilities that would produce green hydrogen for applications in the material handling, transportation, and industrial sectors.

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Key Takeaways

• The Dow, S&P 500, and Nasdaq were little changed at midday Tuesday, May 14, 2024, after the latest report on producer prices showed wholesale inflation was hotter than expected in April. 
• Solar and electric vehicle stocks advanced as the White House announced tariffs on a large swath of Chinese imports, from semiconductors and solar cells to electric vehicles.
• Monday’s resurgence of the meme stock craze of early 2021 continued, with shares of AMC Entertainment and GameStop skyrocketing.

The Dow, S&P 500, and Nasdaq were little changed at midday after the Labor Department reported wholesale prices rose more than expected in April.

Solar stocks such as Enphase Energy (ENPH) climbed, as well as those of Tesla (TSLA) and other electric vehicle (EV) makers, after the Biden Administration announced tariffs on a large swath of Chinese imports, from semiconductors and solar cells to electric vehicles.

Shares of PlugPower (PLUG) soared after the hydrogen technology company said it received a conditional Department of Energy (DoE) loan of up to $1.66 billion to add six new facilities.

Monday’s resurgence of the meme stock craze of early 2021 continued, with shares of AMC Entertainment (AMC) skyrocketing as the movie theater chain completed its $250 million stock sale. Shares of another meme favorite, GameStop (GME), also soared.

Alibaba Group (BABA) American depositary receipts (ADRs) dropped after the Chinese e-commerce giant reported an 86% plunge in fiscal fourth-quarter net income from a year ago on the back of investment losses.

Amazon (AMZN) shares lost ground after the tech giant said Amazon Web Services CEO Adam Selipsky will step down.

Shares of Marathon Petroleum (MPC) were lower as the energy producer shook up its management team, naming President Maryann Mannen to replace CEO Michael Hennigan, who became executive chair. 

Oil futures slid and gold prices advanced. The yield on the 10-year Treasury note fell. The U.S. dollar was up versus the yen, but slipped against the euro and pound. Most major cryptocurrencies traded in negative territory.

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News of the day for May 14, 2024

Pandemic-era meme stocks GameStop (GME) and AMC Entertainment (AMC) continue to soar in premarket trading following the return to social media of famed investor “Roaring Kitty”; President Joe Biden imposes sweeping tariffs on a large swath of Chinese imports from steel to semiconductors and electric vehicles, turning up the heat in trade tensions between the two countries; Home Depot (HD) posts higher-than-forecast first-quarter earnings but undershoots on sales; the Producer Price Index numbers for April are due today, giving a read on whether price pressures are cooling enough to encourage Federal Reserve officials to cut interest rates; and Anglo American is planning to split up and sell several assets after rejecting a sweetened $43 billion offer by rival mining giant BHP Group (BHP). U.S. stock futures are little changed ahead of the U.S. producer prices numbers and a speech by Federal Reserve Chair Jerome Powell today at an event in the Netherlands. Here’s what investors need to know today.

1. GameStop and AMC Continue the Rally Sparked by Return of ‘Roaring Kitty’

Pandemic-era meme stocks GameStop (GME) and AMC Entertainment (AMC), which both surged more than 70% to multi-month highs on Monday, continued soaring in premarket trading. The brick-and-mortar video game retailer and the cinema chain operator were both around 100% higher in premarket trading two hours before the opening bell. In 2021, the social media-fueled meme stock frenzy that swept Wall Street squeezed hedge funds that held short positions in either stock. Monday’s rally was triggered by key meme online persona “Roaring Kitty” making his first post on X in three years—causing losses nearing $1 billion for GameStop short sellers, according to data from S3 Partners cited by CNBC. 

2. Biden Levies Sweeping Tariffs on Chinese Chips, Minerals, EVs

President Joe Biden imposed sweeping tariffs on a large swath of Chinese imports from steel to semiconductors and electric vehicles, turning up the heat in trade tensions between the two countries as U.S. officials accuse China of overcapacity in manufacturing. The changes, the culmination of a review of the Section 301 tariffs under former President Donald Trump starting in 2018, are projected to affect around $18 billion in current annual imports, according to the White House. The administration said that the tariff rate on certain steel and aluminum products under Section 301 will increase to 25% in 2024 from 0%–7.5%; the rate on semiconductors will increase to 50% by 2025 from 25%; and the rate on electric vehicles will rise to 100% from 25%.

3. Home Depot Q1 Revenue Lags Forecasts But Profit Beats  

Home Depot (HD) posted higher-than-forecast first-quarter earnings but undershot Wall Street analysts’ projections on revenue, signaling that elevated interest rates continue to weigh on home improvement spending. The retailer reported diluted earnings per share (EPS) of $3.63, topping the $3.58 consensus expectation, but revenue for the three months through April 28 of $36.42 billion was shy of the forecasted $36.65 billion. Home Depot affirmed its previous guidance and said it expects total sales to rise about 1% in fiscal 2024. Chief Executive Officer (CEO) Ted Decker said the quarter “was impacted by a delayed start to spring and continued softness in certain larger discretionary projects.” Home Depot shares were up less than 1% in premarket trading. 

4. Wholesale Prices for April Due in Latest Read on Inflation’s Path

Investors will be closely watching today’s wholesale price numbers and tomorrow’s consumer price index data to give a read on whether price pressures are cooling enough to encourage Federal Reserve officials to cut interest rates. The Bureau of Labor Statistics is due to report the Producer Price Index (PPI) at 8:30 a.m. ET. Wholesale prices are seen rising 0.3% in April from the previous month, according to economists surveyed by The Wall Street Journal and Dow Jones Newswires. In March, the PPI rose 0.2% from the previous month, less than economists had expected. Core PPI is expected to rise 0.2% in April. Inflation readings have continued to move higher in 2024, and consumers have been raising their expectations for future price increases.

5. Anglo American Plans Breakup After Rejecting BHP’s $43B Bid

Anglo American is planning to split up and sell several assets after rejecting a sweetened $43 billion offer by rival mining giant BHP Group (BHP) in a break-up plan CEO Duncan Wanblad called its most “radical” shakeup in decades. Anglo said Tuesday that it would spin off its platinum-metals subsidiary Anglo American Platinum; explore options for putting its nickel operation on “care and maintenance” before divesting it; divest or demerge its diamond unit De Beers; and sell its steelmaking coal assets. BHP had made the bid for Anglo on soaring demand for copper at a time when the world is moving away from fossil fuels toward more renewable energy projects and electric vehicles. Wanblad said the breakup will mean the miner’s assets base will be focused on copper and premium iron ore. BHP shares were 2.5% higher in premarket trading, while Anglo was trading down around 1.6% in London.

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Watch These Key Levels in Both Stocks

Key Takeaways

• Pandemic-era meme stocks GameStop and AMC Entertainment both surged more than 70% on Monday, potentially triggering a short squeeze where investors rush to cover short positions. 
• Monday’s meme stock rally caused losses nearing $1 billion for GameStop short sellers, according to data from S3 Partners.
• GameStop shares may encounter selling near a zone of resistance from prior price action between $37.50 and $63.50.
• AMC Entertainment shares find a confluence of resistance around $13 from the 50-day moving average and a horizontal line extending back to the March 2020 low.

Pandemic-era meme stocks GameStop (GME) and AMC Entertainment (AMC) both surged more than 70% to multi-month highs on Monday, sparking memories of the social media-fueled meme stock frenzy that swept Wall Street in January 2021.

During that crazy month, brick-and-mortar video game retailer GameStop saw its shares soar seventeen-fold, while shares in cinema chain operator AMC jumped six-fold, causing significant losses for hedge funds that held short positions in either stock.

Monday’s rally—reportedly triggered by key meme online persona “Roaring Kitty” making his first post on X in three years—caused losses nearing $1 billion for GameStop short sellers, according to data from S3 Partners cited by CNBC. That could fuel further gains in the days ahead driven by a short squeeze, an event where investors rush to cover their positions, putting additional upward pressure on prices.

Below, we take a closer look at the charts of both meme stocks and point out important levels to watch in upcoming trading sessions.

GameStop

Taking a look at the weekly chart, the GameStop share price has remained entrenched in a descending channel since topping out in January 2021 at the height of the social media-fueled meme stock rally. In recent weeks, the shares have moved up towards the pattern’s upper trendline that closely aligns with the 50-day moving average, indicating growing bullish sentiment. Moreover, Monday’s 74% gap higher opens the door for follow-through buying, given the move occurred on above average volume and that the price closed above the closely watched 200-day moving average.

Looking ahead, investors should keep an eye on an area between $37.50 and $63.50, a region on the chart where the price may encounter selling pressure from a zone of resistance from prior price action. A breakout above this level could potentially lead to a retest of the stock’s all-time high (ATH) at $120.75.

After gaining 74% during the regular trading session Monday, the stock rose another 21% to $36.90 in after-hours trading.

AMC Entertainment

Also looking at the weekly chart, AMC shares have mostly traded within a descending channel since climbing to over $390 in June 2021 apart from a bull trap breakout over the summer months last year. Interestingly, volume in the stock has significantly increased since that time while the price has continued to plumb new record lows. More recently, buyers have accumulated shares near the channel’s lower trendline, potentially as word of an upcoming meme rally gathered momentum on social media platforms. 

In coming days, investors should monitor the $13 level, an area on the charts where traders may book profits near a confluence of resistance from the 50-day moving average and a horizontal line extending back to the pandemic-era March 2020 low.

After rising 78% during regular trading, AMC shares gained another 24% to $6.42 in extended trading Monday.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Monitor These Key Price Levels

Key Takeaways

• Arm stock will be in focus on Monday after a report surfaced Sunday that the British chip designer plans to launch artificial intelligence chips in 2025.
• The company reportedly plans to establish a new AI chip unit and build a porotype by spring next year before turning to contract manufacturers to have the chips mass produced by fall 2025.
• Arm shares currently trade within a rising wedge, with a breakdown leading to a possible test of $79, while a breakout could see the price climb up to resistance around $145.

Shares in UK-based chip design giant Arm Holdings (ARM) will be in focus on Monday after Nikkei Asia reported Sunday that the company plans to develop artificial intelligence (AI) chips, aiming to launch its first porotype in early 2025.

According to the report, Arm—in which Japan’s SoftBank (SFTBY) owns a 90% stake—will establish a new AI chip unit and build a prototype by spring next year before turning to contract manufacturers to have the chips mass produced by fall 2025.

Arm will fund the majority of the initial development costs, expected to be billions of yen, with Softbank also contributing, the report said. Once up and running, the AI chip business could be spun off under SoftBank.

The Japanese financial giant has already commenced negotiations with Taiwan Semiconductor Manufacturing (TSM) and other chipmakers as it looks to sure up production capacity, Nikkei Asia reported.

Arm Continues Push into Lucrative Datacenter Market

Arm, which makes money by selling royalties on its chip designs, has continued its push into the lucrative AI datacenter market, where tech behemoths such as Microsoft (MSFT), Meta (META), Alphabet (GOOGL), and Amazon (AMZN) have announced plans to build their own in-house chips to power their AI computing requirements, helping to reduce their reliance on AI chip supplying giant Nvidia (NVDA).

Since going public in September last year, the company’s shares have more than doubled from their $51 initial public offering (IPO) price as investors place bets that the chip designer can capture a sizable slice of the AI infrastructure market. Precedence Research of Canada expects the AI chip market to grow from $30 billion this year to $200 billion by 2032.

Monitor These Levels Amid Breakout From Rising Wedge

The Arm share price has traded within a narrow rising wedge since mid April—a chart pattern technical analysts typically interpret as having a bearish bias because it indicates an easing of buying momentum. In the short-term, the price may continue to oscillate in the wedge until the downward sloping 50-day moving average catches up with the pattern’s top trendline before the stock makes its next significant move. 

Amid a move lower, investors should monitor the $79 level, an area where the price may find buyers near the February pre-breakout level. However, if the price climbs above the wedge, it’s worth keeping in mind that the stock could make another attempt at testing key overhead resistance near prior price action around $145.

Arm shares closed trading last week at $108.84, after gaining 5.1% during Friday’s session.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• Berkshire Hathaway, Third Point, and other institutional investors will file 13F forms for the first quarter by Wednesday.
• Berkshire has already revealed that it trimmed its position in Apple and exited its position in Paramount as it works to build up its cash reserves.
• AI is once again a major trend to watch, as investors will keep an eye on changes to holdings in AI-focused tech firms, chipmakers, and other companies tied to the emerging technology.
• Nvidia will be another company to watch, as it will feature as an investment while also filing its own for its positions in stocks such as Arm and SoundHound.

If you look to the investment wisdom of major investors, such as Warren Buffett, Dan Loeb, and others, you will be keeping a close eye on 13F filings this week that will reveal how their equity positions changed from the beginning of the year to the end of March.

Most large investors with assets under management of $100 million or more are required to report their equity holdings each quarter via the SEC’s Form 13F. The deadline for these filings for the March quarter is May 15.

But remember, the 13F filings are only a snapshot of the portfolios at the end of the March quarter, and offer no insight into the price investments were made at or any profit or loss from their sale. They may also not be accurately representative of the portfolios today since trades after March will not be accounted for in these filings.

More Changes For Buffett After Apple, Paramount?

At the recent Berkshire Hathaway (BRK.A, BRK.B) annual shareholders meeting. Warren Buffett revealed two changes to the company’s portfolio, and investors will be keen to know if there were more. The will be especially eager to know any details around the mystery stock investment that it has kept a lid on for almost two filing cycles.

The company pared its stake in Apple (AAPL) for a second quarter in a row, though it remains Berkshire’s largest stock holding. According to Berkshire filings, its Apple position was worth $135.4 billion at the end of the first quarter, compared with $174.3 billion at the end of 2023. That’s a roughly 22% decline in value, when Apple’s price dropped only about 11% at the end of March, compared to the last trading day of December.

The sale was linked to Buffett’s desire to add the the company’s already massive cash reserve of $189 billion, which he predicts will rise to over $200 billion by the end of the second quarter. Investors may want to keep an eye on whether Buffett sold shares of any other companies last quarter to add to the cash pile.

But there was one investment that didn’t quite work out for Berkshire, a rare mistake from Buffett. He admitted during the annual meeting that Berkshire sold its entire position in Paramount Global (PARA) at a big loss. The company had bought Paramount shares in the first quarter of 2022 and at the end of last year, it held 63.3 million shares.

Loeb’s Learning To Love Alphabet Again On AI Potential

Dan Loeb’s Third Point Capital sold its entire Alphabet stake (GOOG) (GOOGL) in the fourth quarter of 2023. But, it looks like Loeb’s changed his mind.

Third Point made a “substantial investment” in Alphabet during the first three months of the year, Loeb said in a recent investor letter, adding that any artificial intelligence-related benefits to the company could outweigh any risks AI poses to its core business.

Alphabet “has both a substantial distribution and technology advantage over competitors and is positioned to use its AI capabilities to unify, enhance, and better monetize the entire suite of its products,” Loeb wrote.

Of course, investors will want to know how large Loeb’s renewed position in Alphabet is, but will also be looking for details around other AI-related investments that now comprise of about half of his entire portfolio.

Third Point upped its holding of Taiwan Semiconductor Manufacturing Co. (TSM) and Loeb pointed specifically to legacy tech companies like Microsoft (MSFT) and Amazon (AMZN) as key players in the AI race, perhaps signaling that those are companies to watch for in the upcoming 13F filing. The fund had sold shares in all three companies in the fourth quarter.

Nvidia: An Investment and An Investor

No conversation around AI-related equity investments can be complete without mentioning Nvidia (NVDA). But prominent investors have extremely divergent views on investing in the tech giant that provides hardware for AI platforms.

Buffett, for example, didn’t own any shares of Nvidia as of December and given the views on AI he expressed at the annual meeting, chances are that stance hasn’t changed much.

But Ray Dalio‘s Bridewater Associates bought a massive stake in Nvidia at the end of last year, increasing its holding nearly six-fold. Investors would want to know if the fund continues to remain bullish on the chipmaker, or has its view changed like that of Stanley Druckemiller.

Druckenmiller’s Duquesne Family Office sold Nvidia shares after they more than tripled in 2023, he told CNBC, adding that the AI trend is “a little overhyped now, but underhyped long term.”

But Nvidia’s not just an investment, it filed its first 13-F last quarter to reveal companies it had invested in.

As of December, Nvidia had positions in AI-focused firms including Arm (ARM), SoundHound AI (SOUN), Nanox Imaging (NNOX), and Recursion Pharmaceuticals (RXRX). Several of the stocks included in the 13F experienced an increase in share price after the disclosure.

Given Nvidia’s prominent position in AI, it’s likely that shifts in its holdings revealed in its upcoming 13F filing could prompt additional market movement for those companies.

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