Bridgewater Cut Nvidia 18% and More Than Doubled Vistra. Is It Rotating From Chips to Power?

Bridgewater Associates disclosed in its second-quarter Form 13F filing that it reduced its position in NVIDIA Corporation by 18% to 3,866,195 shares. Concurrently, the hedge fund more than doubled its holding in power producer Vistra Corp., boosting its stake by 116% to 751,695 shares. The divergent trades highlight a broader market debate regarding whether institutional capital is starting to rotate from compute semiconductor hardware toward critical electric infrastructure bottlenecks required to power massive artificial intelligence data centers. Despite the position trim, NVIDIA continues to exhibit powerful fundamental growth, with quarterly revenue surging 106% to $96.2 billion, driven by a 117% jump in data-center revenue to $89 billion. However, high valuation and customer concentration have prompted some portfolio rebalancing. Meanwhile, overall hedge fund breadth expanded for both stocks during the quarter, suggesting Bridgewater's NVIDIA trim reflects risk-management and factor allocation rather than a systemic rejection of semiconductor growth.