Loeb Rides Nvidia's AI Wave, Bets Big On AT&T's Telecom Comeback

Benzinga
2025.06.02 15:04
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In Q1 2025, Dan Loeb's Third Point reduced stakes in Microsoft and Amazon while investing in AT&T and Nvidia. Loeb acquired 3.78 million shares of AT&T and 1.45 million shares of Nvidia. Nvidia reported a 69% revenue increase to $44.1 billion, but faces $8 billion losses due to U.S. export restrictions. AT&T's Q1 revenue rose 2% to $30.63 billion, exceeding estimates, with shares up 21.83% year-to-date.

In a major portfolio reshuffle in the first quarter of 2025, Dan Loeb slashed Third Point’s stakes in Microsoft Corporation MSFT by 48% and Amazon.com, Inc. AMZN by 32% while acquiring a stake in AT&T Inc. T and Nvidia Corporation NVDA.

The move diversified the portfolio, now boosting its foothold in the telecommunication and software sectors.

Details: According to recent 13F filings, reflecting his holding as of March 31, 2025, Loeb attained a stake of 3.78 million in AT&T and 1.45 million in NVIDIA.

Let's have a look at the major events in both companies.

Nvidia Corporation:

  • On May 19, Nvidia disclosed Nvidia Isaac GR00T N1.5, the first update to Nvidia's open, generalized, fully customizable foundation model for humanoid reasoning and skills.
  • On May 28, Nvidia reported first-quarter revenue of $44.1 billion, up 69% year-over-year and up 12% from the fourth quarter. The revenue beat a Street consensus estimate of $43.2 billion.
  • The company reported adjusted earnings of 81 cents per share in the first quarter, which may not compare to analyst estimates.
  • Nvidia guided for second-quarter revenue of $45.0 billion, +/—2%. The guidance includes a loss of $8.0 billion in H20 revenue due to the export controls.
  • During its first-quarter earnings call, Nvidia executives disclosed that new U.S. restrictions on its H20 AI chips bound for China would cost the company about $8 billion in the current quarter.
  • Needham analyst Quinn Bolton said, “Export restrictions largely exclude NVIDIA from the China AI market ($50 billion TAM), and loss of access to this market could have a material adverse effect on the company’s business and benefit foreign competitors.”
  • Nvidia shares rose nearly 1.65% year to date, compared to the GraniteShares 2x Short NVDA Daily ETF NVD, which fell about 42.93% over the same time frame.

AT&T:

  • On April 23, The telecom giant reported quarterly operating revenues of $30.63 billion, up 2.0% year over year. This beat the analyst consensus estimate of $30.35 billion. Adjusted EPS of $0.51 also beat the analyst consensus estimate of $0.49.
  • AT&T reiterated consolidated service revenue growth in the low-single-digit range, Mobility service revenue growth in the higher end of 2%-3%, Consumer fiber broadband revenue growth in the mid-teens, and adjusted EPS of $1.97$2.07 versus the $2.04 analyst consensus estimate.
  • On May 2, Fiber infrastructure company PRIME FiBER tapped AT&T to provide wholesale fiber access services in the Sun City area of Maricopa County and the City of Peoria, Arizona.
  • On May 22, Lumen Technologies Inc. LUMN entered into a definitive agreement with AT&T to sell its mass-market fiber-to-the-home business in 11 states for $5.75 billion in cash.
  • AT&T shares have increased 21.83% year to date, compared to the iShares U.S. Telecommunications ETF IYZ, which rose 4.08% in the same time frame.
  • Why Dan Loeb Just Made Kenvue One Of His Top Holdings

Image created using artificial intelligence via Midjourney.

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