Ken Griffin’s Contrarian AI Investment Strategy
Ken Griffin, founder of Miami-based hedge fund Citadel Securities, has been making headlines with his recent investment moves in the artificial intelligence (AI) sector. Despite being one of Wall Street’s most respected figures, Griffin has expressed skepticism about the AI boom, stating that while it ‘saves some time’ and is a ‘productivity enhancement tool,’ it hasn’t been ‘game-changing’ for their investment business.
Contrasting Moves in AI Stocks
Griffin’s Citadel Securities has taken a nuanced approach to AI investments. During the first quarter of 2025, the fund significantly reduced its stake in Nvidia (NVDA), selling 1,555,264 shares – roughly halving its position. This move was notable as Nvidia is considered a leading player in the AI chip market. Conversely, Citadel more than tripled its stake in Advanced Micro Devices (AMD), adding 2,786,115 shares with a current market value of approximately $326 million. AMD is also a major manufacturer of graphics processing units (GPUs) crucial for building and scaling large language models.
Why AMD Over Nvidia?
The divergence in Citadel’s investment strategy between Nvidia and AMD may be attributed to several factors. Analyst Jay Goldberg of Seaport Research Partners highlighted concerns about Nvidia’s technology, including customer questions about its utility and the complexity required for deployments. Additionally, some customers are designing their own chips in-house to reduce reliance on Nvidia’s reportedly overpriced GPUs. On the other hand, UBS analyst Timothy Arcuri expressed a bullish outlook on AMD, suggesting it could benefit from Nvidia’s challenges in ramping new system solutions.
Market Implications
Griffin’s investment decisions often draw significant attention from investors. The contrasting moves in Nvidia and AMD underscore the complex landscape of AI investments. While Nvidia has been a clear leader in the AI chip market, Griffin’s bet on AMD suggests potential opportunities in the competitive landscape of AI technology. As the AI sector continues to evolve, investors are closely watching how major players like Citadel navigate these waters.
The strategic shift by Citadel reflects broader themes in the AI investment space, where even respected figures like Griffin are taking cautious and considered approaches. As the technology continues to develop, the investment community remains attentive to how these movements might shape the future of AI in finance and beyond.
