Pacer Advisors Inc. Reduces Position in NVIDIA Corporation $NVDA - MarketBeat

In August 2026, Pacer Advisors Inc. significantly reduced its NVIDIA stake by 36.6%, selling 1.09 million shares and retaining 1.88 million shares valued at approximately $328.7 million. Despite this ... Read original →

NVIDIA's institutional selling reflects growing concerns over AI chip valuations and financing strain. The reduction by Pacer Advisors signals market skepticism on GPU demand sustainability, especially as next-gen products like GB300 remain in early deployment phases. Rising upstream costs in EUV and 3nm processes, coupled with geopolitical risks in China Taiwan/ Taiwan, China and Europe, are pressuring margins. Competitors such as IBM and Together AI may accelerate in-house chip development to reduce reliance on NVIDIA. Short-term focus will be on earnings results to validate revenue trends, while long-term viability hinges on NVIDIA's ability to manage capital expenditure and supply chain resilience.