Veteran Investor Sells 50% of His NVDA Stock

Citing trade restrictions, a slowdown in corporate spending growth, and the weakness of the stock market, Steve Weiss, the Chief Investment Officer and Managing Partner of Short Hills Capital Partners, reported on CNBC recently that he had sold 50% of his NVDA stock. He asserted that the NVDA shares which he unloaded were "a trading position."

Weiss indicated that he would look to sell the rest of his position in the chip giant relatively soon.

Trade Curbs 

NVDA announced this week that it would take a large writedown after the Trump administration forced it to acquire export licenses for chips that it had planned to sell to Chinese entities. These chips had previously been exempt from such requirements.

According to Weiss, a significant number of other firms will encounter similar trade barriers in the future.

Moreover, in the wake of NVDA's writedown, the investor stated that he was "waiting for a better price to sell the rest" of his shares of the chip maker.

The Spending Slowdown and the Market's Weakness

In light of the current uncertainty triggered by trade barriers, many companies have reduced their spending by large amounts, Weiss reported, adding that he expected the large cloud-infrastructure names to slow their spending going forward. Such a move by the latter firms would have a meaningful, negative effect on NVDA.

Addressing the stock market's status, Weiss said, "The bearish sentiment in the market has not changed....and there's plenty of trouble ahead."

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Disclosure: None. This article is originally published at Insider Monkey.