Avalon Global Cuts 80,000 Nvidia Shares Under Kukacka - The Globe and Mail

Avalon Global Asset Management LLC, managed by Nancy Kukacka, recently reduced its Nvidia (NVDA) stake by 80,000 shares, sparking market interest in the semiconductor giant's future outlook. According... Read original →

Avalon Global’s 80,000-share reduction in NVIDIA reflects tactical de-risking amid stretched valuations and geopolitical fragility—not a fundamental downgrade. Technically, if replicated by other funds, it could erode capital buffers supporting the AI chip ecosystem, slowing downstream large-model infrastructure buildout. On compliance, escalating U.S. export controls on advanced semiconductor tools and concentrated foundry risk in Taiwan, China are forcing NVIDIA to diversify assembly/test capacity to Mexico and India, inflating OpEx. Competitively, AMD and Intel are exploiting this window with cost-optimized AI accelerators, especially in Southeast Asia and data center tenders in Hong Kong, China. Over the next 12–24 months, despite NVIDIA’s architectural dominance, its single-supplier dependency faces long-tail vulnerability: any Blackwell ramp delay or breakthrough in China’s domestic GPU stack (e.g., Ascend) could trigger rapid capital rotation.