Ethereum News Today: Institutional investors shift capital to AI infrastructure amid Nvidia stake sales

Bridgewater Associates, the world's largest hedge fund, significantly reduced its stake in Nvidia Corporation by 65.3% in the third quarter of 2025, according to the firm's latest 13F filing. The move, which trimmed its position from 7.23 million shares to 2.51 million, underscores growing macroeconomic concerns among institutional investors as global markets grapple with shifting capital allocations toward artificial intelligence (AI) infrastructure according to market analysis. The reduction comes amid broader strategic reallocations by major players, including SoftBank's full exit from its Nvidia stake in October 2025, which fetched $5.8 billion to fund new AI initiatives.

Nvidia's stock has remained resilient despite these institutional exits, closing at $199.05 on November 10, 2025, with a staggering $4.85 trillion market capitalization. The semiconductor giant reported record fiscal Q2 2026 revenue of $46.74 billion and a 52.41% profit margin, driven by surging demand for its AI accelerator chips. Analysts remain overwhelmingly bullish, with 64 "strong buy" ratings and an average price target of $230.78, reflecting confidence in the company's dominance in AI-driven computing. However, the recent premarket dip -1.1% to $196.05 on November 11 - highlighted investor sensitivity to large-scale stakeholder exits.

The sell-off by Bridgewater and SoftBank reflects a broader trend of capital rotation within the AI ecosystem. SoftBank's $5.8 billion divestment, disclosed in October, was explicitly tied to funding new AI ventures. This aligns with broader market dynamics where institutional investors are rebalancing portfolios to prioritize high-growth AI infrastructure plays over traditional tech stocks according to market reports. For instance, Bridgewater simultaneously increased holdings in Applied Materials (AMAT) and Lam Research (LRCX), signaling a shift toward semiconductor manufacturing equipment firms poised to benefit from AI-driven chip demand.

Nvidia's leadership in the AI sector remains unchallenged, with its shares gaining 34.23% over the past year and outperforming the S&P 500 by a wide margin. The Alger Spectra Fund, managed by Fred Alger Management, highlighted Nvidia as a top holding in its third-quarter investor letter, citing its 10.56% one-month return and robust earnings trajectory. However, some analysts caution that the stock's trailing P/E ratio of 56.71 and forward P/E of 30.30 reflect elevated expectations, which could make it vulnerable to short-term volatility.

The interplay between traditional tech stocks and AI-focused cryptocurrencies also gained attention. BitMine Immersion Technologies, the largest Ethereum treasury company, purchased 110,288 ETH in the past week, increasing its holdings by 34% amid a 13.4% two-week price decline. This move, coupled with Ethereum's shrinking exchange supply, to levels last seen in May 2025, suggests growing institutional confidence in blockchain's role in AI infrastructure. Ethereum's tokenized asset base, now exceeding $200 billion, further reinforces its utility as a foundational layer for AI-driven financial applications.

As the AI revolution accelerates, investors are weighing the long-term potential of AI-specific stocks against the risks of overvaluation. While Bridgewater's reduced exposure to Nvidia signals caution, the broader market remains bullish on AI's transformative impact. With Nvidia's next earnings report due on November 19, 2025, and Ethereum's onchain fundamentals showing signs of strength, the coming weeks will test the resilience of both AI stocks and cryptos in an increasingly interconnected financial landscape.