A Blue Whale Capital LLP investment fund has reduced its stakes in major US technology companies due to concerns over the costs of artificial intelligence, according to a report by the Financial Times.
The Blue Whale Growth Fund, backed by billionaire Peter Hargreaves, cut its holding in Microsoft Corp. to 2% from 8% and its stake in Meta Platforms Inc. to 3% from 5%. The fund’s manager, Stephen Yiu, stated that Microsoft’s return on invested capital is likely to decline due to significant AI investments.
The Blue Whale fund has become increasingly less positive on other “Magnificent Seven” tech stocks, citing high spending on AI as the reason. However, Nvidia Corp., which remains one of the fund’s top holdings, continues to be a notable exception. The fund’s decision comes amid growing concerns over the financial impact of AI investments on technology companies.
Source: https://finance.yahoo.com/news/blue-whale-cuts-stakes-tech-064127088.html