NEW YORK — Catalyst Capital Management liquidated its entire Nvidia position, selling 1.8 million shares worth $424 million. The move comes as Nvidia stock returned 24 percent year-to-date, outperforming the S&P 500 by nine percentage points.
The fund, known for concentrated positions in high-growth equities, held the Nvidia stake for more than two years. Its complete divestment suggests a reassessment of the AI chipmaker's near-term growth trajectory or elevated valuation. Nvidia trades at 35 times forward earnings, a premium to its five-year average of 28 times.
Nvidia stock rose 4.4 percent Tuesday, trading at $235.74. The S&P 500 gained 0.8 percent to 7,501. The strong performance despite a major institutional exit becoming public indicates persistent market conviction in AI sector prospects. Large-cap technology funds continue to hold substantial Nvidia allocations, with the top 10 institutional holders controlling more than 30 percent of outstanding shares.
Nvidia's data center segment generated $22.6 billion in first-quarter revenue, increasing 427 percent year-over-year. The company's upcoming Blackwell architecture is expected to further solidify its market leadership.
Analysts at Wedbush Securities reiterated an Outperform rating on Nvidia, setting a $280 price target. They cited continued robust demand for Hopper and Blackwell GPUs from sovereign AI initiatives and hyperscalers. The target implies 19 percent upside from current levels.
