Ken Griffin has etched his name in the annals of Wall Street lore, known for a prescient call on the 1987 stock market crash. As the CEO and founder of Citadel Advisors, Griffin steered the hedge fund to unprecedented success, raking in a whopping $16 billion in profits in 2022 – the largest in hedge fund history.
The AI Revolution
Griffin, a vocal advocate for generative artificial intelligence (AI), sees immense potential in this burgeoning field. Forecasted to reach a market value of $1.3 trillion by 2032, AI stands poised to revolutionize industries with its automated efficiency.
Citadel’s AI Dominance
Despite a diverse portfolio, Griffin’s Citadel Advisors has its top five stakes firmly anchored in AI stocks, a testament to his confidence in the sector’s growth trajectory.
Nvidia: The Powerhouse
Leading the pack is Nvidia, a stalwart in GPU technology. Nvidia’s foray into generative AI has positioned it as a market leader. Despite supply constraints, Nvidia’s relentless innovation keeps it ahead of the curve. Griffin upped his Nvidia stake by 77% in Q4, owning $3.1 billion worth of shares.
Microsoft’s AI Prowess
Microsoft’s strategic investments in AI have paid dividends, with its Copilot AI suite driving revenue growth. Azure Cloud’s AI capabilities continue to outstrip competitors. Griffin reduced his Microsoft stake by 16% in Q4, holding $1.7 billion in shares.
AMD: The Rising Star
Advanced Micro Devices (AMD) is carving a niche in the AI chip market, offering a cost-effective alternative to Nvidia. With a PEG ratio below 1, AMD presents as an undervalued gem. Griffin hiked his AMD stake by 140%, with holdings worth $1.2 billion.
Meta’s AI Ingenuity
Meta Platforms integrates AI seamlessly across its platforms, bolstering advertising effectiveness. Meta’s Llama AI model and cloud presence open new revenue streams. Griffin surged his Meta stake by 127%, owning $1.2 billion in shares.
Amazon’s AI Arsenal
Amazon’s AI prowess is evident across its operations, with AI models optimizing processes. AWS’s Bedrock AI platform offers a range of generative AI models. Griffin holds $2.5 million shares of Amazon worth $1.2 billion.