Billionaire Philippe Laffont Sold CoreWeave and Bought This Artificial Intelligence (AI) Stock Instead

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His hedge fund, Coatue Management, is known for making big bets on emerging technology trends. And no trend has had a bigger influence on Coatue's recent portfolio moves than artificial intelligence.Investors can get an idea of what companies Laffont thinks stand to gain the most from mega-trends in technology like artificial intelligence by following Coatue's 13-F filings with the Securities and Exchange Commission. The disclosures show the hedge fund's positions in its publicly traded U.S. stocks each quarter. Coatue's most recent filing shows it sold CoreWeave (NASDAQ: CRWV), once the fund's largest position, in favor of another great AI stock.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Here's what investors need to know.Image source: Getty Images.CoreWeave didn't make its public market debut until early 2025, but Coatue has held a stake in the company since 2024. It led the cloud computing company's Series C funding round that year. The hedge fund added to its position following the IPO, and combined with the stock's incredible price performance, it surged to become Coatue's largest holding as of the end of the second quarter.But Laffont and his team started cutting its position in the third quarter before fully disposing of it in the fourth quarter. The timing couldn't have been better. The share price has collapsed since October, down about 50%.CoreWeave is an extremely risky investment. The company specializes in AI data centers. Thanks to a close relationship with Nvidia, a major shareholder, it has access to the high-powered, in-demand graphics processing units (GPUs) companies need for AI training and inference. It signs long-term contracts with developers to use those GPUs even before it builds out the capacity. It then uses those contracts as collateral for loans to fund data center build-outs. That means it's highly leveraged relative to its earnings.That allows it to grow quickly, but it also means that any missteps can have a significant effect on its bottom line. Investors saw that happen when it reported a delay in one of its contractors in building out data centers last fall, which led to a collapse in the stock price. However, demand for compute remains insatiable, and CoreWeave's biggest customers have stuck with it. So it's only a matter of time before it makes up for the lost revenue from not being able to meet demand.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersBTC-USD Bitcoin USD 67,260.99 +365.45 (+0.55%)ETH-USD Ethereum USD 2,066.50 +8.08 (+0.39%)XRP-USD XRP USD 1.32 -0.00 (-0.04%)SOUN SoundHound AI, Inc. 6.78 +0.10 (+1.50%)SOL-USD Solana USD 80.88 +0.52 (+0.65%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 103.91 +17.56 (+20.34%)SBAC SBA Communications Corporation 204.04 +32.48 (+18.93%)YSS York Space Systems, Inc. 28.03 +4.43 (+18.77%)VSAT Viasat, Inc. 53.69 +8.46 (+18.70%)LUNR Intuitive Machines, Inc. 23.99 +3.75 (+18.53%)Top losersKNF Knife River Corporation 73.91 -8.20 (-9.99%)WIX Wix.com Ltd. 81.95 -8.55 (-9.45%)PBH Prestige Consumer Healthcare Inc. 52.48 -5.20 (-9.02%)ENPH Enphase Energy, Inc. 34.92 -3.36 (-8.78%)RGC Regencell Bioscience Holdings Limited 30.80 -2.92 (-8.66%)Most activeNVDA NVIDIA Corporation 177.39 +1.64 (+0.93%)INTC Intel Corporation 50.38 +2.35 (+4.89%)NOK Nokia Oyj 8.82 +0.55 (+6.65%)PLUG Plug Power Inc. 2.4100 +0.1600 (+7.11%)TSLA Tesla, Inc. 360.59 -20.67 (-5.42%)Top economic eventsEarnings eventsMy earnings eventsEarnings events