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Investors Pile on Nvidia, Amazon, Apple, Microsoft in Q1, Taking Advantage of Sell-Off

Hedge funds and other large investors piled on $NVIDIA Corp(NVDA)$  , $Amazon.com(AMZN)$  , $Apple(AAPL)$  , and $Microsoft(MSFT)$   in the first quarter, taking advantage of the stock market sell-off that sent the Magnificent Seven stocks to their worst three-month slump since mid-2022. 

Their combined holdings in Nvidia climbed by 116.58 million shares, the most among the Magnificent Seven stocks, according to data compiled by Bloomberg on 7,742 13F filings with the Securities and Exchange Commission for the first quarter as of 4:29 Friday.

Their Amazon holdings climbed 50.41 million shares, while their stake in Apple expanded by 57.16 million shares, the aggregated data showed. Their Microsoft holdings rose by 18.63 million shares. The 13F filings covered trades by institutions including hedge funds, mutual funds and pension funds with at least $100 million in US securities which were posted in the three months ended March, when a gauge of the Magnificent Seven stocks tumbled 16%. 

While their stake may have changed by now, large investors and speculators who held on to their positions benefited as the Magnificent Seven stocks came roaring back as trade tensions eased. The Bloomberg Magnificent 7 Total Return Index is up 14% this quarter, led by a 35% climb for $Tesla Motors(TSLA)$   25% for Nvidia and 21% for Microsoft. Apple is the only one in the Mag 7 that declined so far this quarter, dipping 4.89%.

Nvidia has rebounded more than 43% from this year's low in April when President Donald Trump unleashed sweeping tariffs against its trading partners and its biggest rival, China, spurring a wider stock market sell-off that pushed the $Nasdaq Composite Index (.IXIC.US)$ into a bear market. The tech-heavy benchmark has since recovered 26% from that closing low, after Trump softened his rhetoric and agreed to temporarily slash the levies he imposed on Chinese shipments, fueling optimism that the worst could be over for the stock market. 

That's a stark reversal in sentiment for a company that just in mid-April told the Securities and Exchange Commission that it expects charges of as much as $5.5 billion related to its H20 products, after the Trump administration imposed a new license requirement for export of certain semiconductor products to China.

Nvidia has also overcame the negative sentiment that was fueled by recent government policies intended to restrict shipments of powerful AI chips to other countries on concern that those semiconductors could eventually end up being used to train Chinese AI models. Still, risks remain until the U.S. Department of Commerce concludes its investigation into semiconductors under Section 232 of the Trade Expansion Act of 1962 that grants the US President the authority to adjust imports if they are deemed to threaten national security. 

 "Our outlook on NVDA has considerably improved in recent weeks with favorable policy shifts, including more lenient China tariffs and the scrapping of the AI diffusion rule, though uncertainty remains around the 232 semiconductor investigation," CFRA analyst Angelo Zino wrote in a note to clients Wednesday. 

The rebound for Nvidia comes as investors await results from the leader in semiconductors used to power artificial intelligence. Bloomberg consensus show that on average, analysts expect the company to report a 66% jump in revenue to $43.2 billion for its fiscal first quarter ended April, when it releases financial results on May 28. 

A string of good news also buoyed Nvidia shares, including the recent announcement on May 13 that Humain, an AI-focused subsidiary of Saudi Arabia's Public Investment Fund, will deploy an 18,000 Nvidia GB300 Grace Blackwell AI supercomputer with NVIDIA InfiniBand networking. That deployment is just the first phase of its major investment to build AI factories in the Kingdom of Saudi Arabia with a projected capacity of as much as 500 megawatts powered by several hundred thousand of Nvidia's most advanced graphic processing units over the next five years. 

"The new Saudi Arabia deal, involving 18,000 GPUs across 500 megawatts of data centers, demonstrates NVDA's strategic importance in U.S. trade negotiations," Zino said. "Q1 earnings from mega-cap tech companies have also reinforced AI investment visibility, with customers maintaining or increasing their 2025 capex plans, while Microsoft's commentary suggests continued strength into 2026 (no peak year seen in 2025)."

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