Ethereum News Update: Major investors redirect funds toward AI infrastructure as they reduce holdings in Nvidia
Bridgewater Associates, recognized as the largest hedge fund globally,
made a substantial cut to its holdings
in
Nvidia Corporation
by 65.3% during the third quarter of 2025, as revealed in its most recent 13F disclosure. This adjustment, which saw its shares drop from 7.23 million to 2.51 million, highlights increasing macroeconomic caution among major investors as worldwide markets adjust capital flows toward artificial intelligence (AI) infrastructure
based on industry analysis
. This downsizing occurs alongside broader portfolio shifts by leading institutions,
such as SoftBank’s complete divestment
of its
Nvidia
shares in October 2025, which generated $5.8 billion to support new AI projects.
Despite these major institutional sell-offs, Nvidia’s stock has shown strength, ending at $199.05 on November 10, 2025,
and boasting a remarkable $4.85 trillion market value
. The chip industry leader
achieved record-breaking revenue for fiscal Q2 2026
at $46.74 billion, with a profit margin of 52.41%, fueled by soaring interest in its AI accelerator products.
Experts remain highly optimistic
, with 64 “strong buy” recommendations and an average price estimate of $230.78, reflecting faith in Nvidia’s leadership in AI computing. Still,
a recent premarket slide
of -1.1% to $196.05 on November 11, underscored how sensitive investors are to large-scale share liquidations.
The asset sales by Bridgewater and SoftBank
illustrate a wider movement
of capital rotation within the AI sector.
SoftBank’s $5.8 billion sale
, announced in October, was directly linked to financing new AI-related endeavors. This mirrors a broader trend where institutional investors are adjusting their holdings to focus on rapidly expanding AI infrastructure rather than legacy tech equities
as noted in market studies
.
For example, Bridgewater
simultaneously boosted its investments
in Applied Materials (AMAT) and Lam Research (LRCX), indicating a pivot toward companies that manufacture semiconductor equipment and are set to benefit from increased demand for AI chips.
Nvidia continues to dominate the AI industry,
with its stock rising 34.23%
over the last year, significantly outperforming the S&P 500. The Alger Spectra Fund, managed by Fred Alger Management,
named Nvidia as a leading position
in its Q3 investor update, highlighting a 10.56% return in one month and strong earnings momentum. However,
certain analysts warn
that the current trailing P/E of 56.71 and forward P/E of 30.30 suggest high expectations, which could expose the stock to short-term price swings.
The relationship between traditional tech equities and AI-oriented cryptocurrencies has also drawn notice. BitMine Immersion Technologies, the largest
Ethereum
holding company,
acquired 110,288 ETH
in the last week, expanding its portfolio by 34% even as prices dropped 13.4% over two weeks.
This acquisition, along with Ethereum’s declining exchange balances
, now at levels not seen since May 2025, points to rising institutional trust in blockchain’s significance for AI infrastructure.
Ethereum’s tokenized asset holdings
, which have surpassed $200 billion, further emphasize its role as a core platform for AI-powered financial solutions.
As the AI transformation gains momentum, investors are carefully considering the future prospects of AI-centric stocks against the backdrop of potential overvaluation. While Bridgewater’s decision to scale back its Nvidia position signals prudence, the overall sentiment toward AI’s disruptive potential remains positive.
With Nvidia’s upcoming earnings announcement
scheduled for November 19, 2025, and
Ethereum’s on-chain metrics showing resilience
, the next few weeks will be a crucial test for both AI equities and cryptocurrencies as financial markets become ever more interconnected.
