Nvidia and CoreWeave Surge as Coatue's Laffont Doubles Down on AI Bet

Philippe Laffont's $70 billion hedge fund Coatue Management has doubled down on Nvidia, seeing the company as a key player in the AI stack shift. Laffont has also placed a high-conviction bet on Nvidia's AI-cloud partner CoreWeave. The fund manager's Q2 portfolio shows bigger bets on Nvidia, CoreWeave, Oracle, and Arm, while trimming hardware cyclicals.

Philippe Laffont's $70 billion hedge fund, Coatue Management, has significantly increased its stakes in Nvidia and its AI-cloud partner CoreWeave, as well as added substantial positions in Oracle and Arm. This strategic shift reflects the fund's focus on AI infrastructure and cloud technology, positioning it for the upcoming AI capital expenditure super-cycle.

In the second quarter of 2025, Coatue boosted its Nvidia holdings by approximately a third, raising its stake to 11.5 million shares, a 34% increase from the first quarter [1]. This move underscores the fund's belief in Nvidia's dominance in the training-and-inference economy through GPUs, networking, and CUDA.

Concurrently, Coatue placed a high-conviction bet on CoreWeave, Nvidia's premier AI-cloud customer and strategic partner. The fund added 3.39 million shares, taking its stake to around $2.9 billion [1]. This investment highlights the fund's strategy of owning the infrastructure that every AI model will require.

Laffont's Q2 portfolio also included new stakes in Oracle and Arm. Coatue invested $843 million in Oracle, valued at $843 million, and $749.4 million in Arm [1]. These investments diversify the AI play from semiconductors to software, data, and CPU toll booths.

Additionally, Coatue bolstered its overall AI infrastructure positioning by adding 5.65 million shares in Broadcom, valued at $1.56 billion [1]. The fund also trimmed its exposure to hardware cyclicals by exiting Super Micro and Monolithic Power [1].

This strategic shift towards AI infrastructure and platform names demonstrates Coatue's commitment to the AI sector and its belief in the long-term growth and sustainability of these technologies. By focusing on infrastructure over server shipments, Laffont is positioning Coatue for higher returns and stability amidst market volatility.

References:
[1] https://finance.yahoo.com/news/billionaire-fund-manager-doubles-down-184700791.html
[2] https://www.benzinga.com/trading-ideas/long-ideas/25/08/47173334/billionaire-fund-manager-doubles-down-on-nvidia-and-key-ai-stack-play
[3] https://theoutpost.ai/news-story/coatue-management-doubles-down-on-ai-investments-adds-oracle-to-portfolio-19110/