Jonah Cheng, founder of tech-focused hedge fund Captain Global, has exited his long-held position in Nvidia, citing concerns over the semiconductor giant’s near-term outlook despite it being the most profitable trade of his career, according to a report by Bloomberg.
Cheng, whose fund returned 42% in 2023, fully divested from Nvidia during Q1 2025, raising red flags over delays related to its GB200 rack systems, softening cloud demand, and rising competition from custom-designed chips. Despite Nvidia’s meteoric multi-year rise – its shares are up more than 1,400% over five years – Cheng believes the risk-reward has shifted unfavourably.
“I really like Nvidia, which is the stock that helped me make the most money in my life,” Cheng told Bloomberg. “But when I need to sell, I need to sell. You can’t fall in love with a stock.”
Captain Global, which manages approximately $100m, was an early investor in Nvidia following its inception in 2016. Cheng, a former UBS chip analyst, had added to the position multiple times over the years, capitalising on Nvidia’s AI-fuelled surge.
In addition to Nvidia, Cheng also exited Taiwan Semiconductor Manufacturing Co (TSMC) late last year, citing geopolitical instability and limited visibility around hyperscaler capex plans.
Cheng is now reallocating capital toward smaller-cap enablers in the AI server supply chain — companies he believes are poised to benefit from ongoing infrastructure buildouts.
