Billionaire Chase Coleman Just Bought Shares of These 2 AI Giants That Have Climbed 34% and 11% Since Their Stock Splits Last Year

Chase Coleman's Tiger Global Management increased its holdings in AI chip giant Nvidia by 13% to 10,967,550 shares and networking powerhouse Broadcom by 23% to 2,271,500 shares during the first quarter, capitalizing on valuation declines due to tariff concerns. Despite recent valuation increases amid tariff optimism, Nvidia and Broadcom are considered attractive long-term AI investments due to their strong AI revenue growth and dominant positions in the expanding AI market, making them potentially lucrative buys following their stock splits last year.

Analysis

Chase Coleman's Tiger Global Management significantly increased its exposure to the artificial intelligence sector during the first quarter, as revealed by recent 13F filings. The firm augmented its Nvidia (NVDA) holdings by 13% to 10,967,550 shares, making it the seventh-largest position, and boosted its Broadcom (AVGO) stake by 23% to 2,271,500 shares, ranking as its 22nd-largest holding. These acquisitions occurred when valuations for these AI-centric companies had declined, partly due to investor concerns over potential import tariffs. Both Nvidia, which completed a stock split in June of the previous year and has since gained 11%, and Broadcom, which split its stock in July and subsequently surged 34%, are highlighted for their strong performance post-split. The article notes that stock splits can signal corporate confidence and improve share accessibility. Despite recent valuation increases, with Nvidia trading at 31 times forward earnings estimates and Broadcom at 34 times, these levels are presented as reasonable. This justification is rooted in their dominant market positions and robust growth, evidenced by Nvidia's consistent record revenue and Broadcom's reported 77% year-over-year surge in AI revenue in its recent quarter. Tiger Global, known for its focus on innovation and managing over $50 billion, also holds significant positions in Meta Platforms (16% weighting) and Microsoft (8% weighting), underscoring its commitment to technology leaders.

Key Decisions for Investors

• Investors with a long-term growth focus may consider Nvidia and Broadcom as core holdings in the artificial intelligence sector, given Tiger Global's increased conviction and the companies' strong AI revenue momentum.
• Current valuations for Nvidia (31x forward P/E) and Broadcom (34x forward P/E), though higher recently, are presented as reasonable within the context of their growth prospects and market leadership, potentially offering viable entry points.
• Monitor ongoing AI-related revenue growth for both companies and remain aware of macroeconomic factors, such as trade policies, which influenced their valuations in the first quarter.
• While insights from 13F filings like Tiger Global's are valuable, any investment decisions should align with individual risk tolerance and portfolio strategy, rather than solely mimicking prominent investors.