In this article, we discuss the 3 tech stocks that billionaire Chen Tianqiao dumped and the 4 stocks that he is betting on.
Chen Tianqiao is a prominent Chinese entrepreneur and investor, best known for founding Shanda Interactive Entertainment, one of the leading internet and gaming companies in China during the early 2000s. Tianqiao also heads Shanda Asset Management, a hedge fund that managed more than $1.7 billion in 13F securities at the end of the third quarter of 2024. Through his innovative approach to technology and business, Chen has become one of the pioneers of the online gaming industry and a significant figure in the global tech and neuroscience communities.
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Chen Tianqiao was born in 1973 in the Zhejiang province of China. Raised in a modest family, he excelled academically and earned admission to Fudan University, one of the top institutions in the Asian country, where he studied economics. His early years were marked by a strong interest in technology and business, which would later define his career. After graduation, Chen began his career in the investment arm of the state-owned conglomerate Jinjiang Group, where he honed his business and financial skills. However, his entrepreneurial ambitions led him to leave the corporate world and pursue opportunities in the burgeoning internet industry.
In 1999, Chen co-founded Shanda Interactive Entertainment with his wife, Luo Qianqian, and younger brother, Chen Danian. The company initially focused on developing and distributing multimedia content but quickly shifted its focus to online gaming. In 2004, Shanda became the first Chinese online gaming company to list on the NASDAQ stock exchange, raising $152 million. By the mid-2000s, Chen was one of the richest individuals in China, with Forbes naming him one of the wealthiest self-made billionaires under 40.
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For this article, we selected stocks by combing through the 13F portfolio of Shanda Asset Management at the end of the third quarter of 2024. These stocks are also popular among other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A senior executive looking up at a large boardroom filled with the stocks their company manages.
Billionaire Chen Tianqiao Dumped 3 Tech Stocks and Betting On These 4 Stocks
7. DoorDash, Inc. (NYSE:DASH)
Number of Hedge Fund Holders: 73
DoorDash, Inc. (NYSE:DASH) operates a logistics platform that connects merchants, consumers, and dashers in the United States and internationally. In the regulatory filings for the second quarter of 2024, Shanda Asset Management reported owning 300,000 shares in the company worth more than $32.6 million, representing nearly 1.83% of the portfolio. These shares were purchased at an average price of $120.46. This was a new holding in the portfolio, compared to previous 13F revelations. However, in the filings for the third quarter of 2024, the hedge fund reported that it had sold off this stake entirely. The stock has climbed more than 66% in value over the past six months and is presently trading at around $174 per share.
6. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. In the 13F filings for the second quarter of 2024, Shanda Asset Management reported owning 200,000 shares in the company worth more than $39.8 million, representing nearly 2.23% of the portfolio. These shares were purchased at an average price of $188.89. This was a new holding in the portfolio, compared to previous regulatory revelations. However, in the filings for the third quarter of 2024, the hedge fund reported that it had sold off this stake entirely. The stock has climbed down more than 15% in value over the past six months and is presently trading at around $164 per share.
5. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) is a California-based technology company that owns and runs the internet search engine Google. In the securities filings for the second quarter of 2024, Shanda Asset Management reported owning 2.5 million shares in the company worth more than $455 million, representing nearly 25.56% of the portfolio. However, in the filings for the third quarter of 2024, the hedge fund reported that it had sold off this stake entirely. The stock has climbed more than 7% in value over the past six months and is presently trading at around $196 per share.
4. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 235
Shanda Asset Management’s Stake: $57.2 million
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. This company demonstrates an array of qualities that make it a solid investment pick. First of all, the company’s capital return program holds great potential for investors, as depicted in the report for the third quarter of 2024. Share repurchases were $8.86 billion of Class A common stock, and total dividend and dividend equivalent payments were $1.26 billion. The second most compelling factor that may attract investment is Meta’s project, Ray-Ban smart glasses, which have the ability to translate other languages via screen transmission or built-in speakers. Moreover, the company is committed to integrating AI across all its platforms. Meta plans to increase its spending levels in 2025 by as much as $10 billion to support infrastructure investments for its AI efforts.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 158
Shanda Asset Management’s Stake: $116.5 million
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. This company demonstrates several qualities that make it a solid investment pick. The first factor that may attract great investment is the company’s financial growth, as reported in the third quarter of 2024. For instance, the total revenue record of $94.9 billion, up 6% from a year ago and the cash dividend was $0.25 per share of the company’s common stock. The second great factor that may attract investment is the production of the new iPhone SE model, which is being prepared for an early 2025 launch that will include artificial intelligence (AI) features. Moreover, the company has collaborated with OpenAI to integrate ChatGPT technology into its devices, which will enhance app personalization and user experience. Lastly, the integration of Apple Intelligence into a broader range of devices, including the iPhone SE 4, iPad, Apple Watch, and Apple TV, also holds great investment potential.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
Shanda Asset Management’s Stake: $121.4 million
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. The company’s investment potential is driven by following several factors. To begin with, the investors may consider the company’s financial growth as a top factor. As illustrated in the report of the third quarter of 2024, GAAP (generally accepted accounting principles) earnings per diluted share was 0.78 dollars, up 16% from the previous quarter and up 111% from a year ago. Additionally, the company’s quarterly net income was 19.3 billion dollars, up 16% from the second quarter and up 112% from a year ago. The second most compelling factor that may attract investment is the launch of its project DIGITS, the world’s smallest AI supercomputer capable of running 200B-parameter models. Moreover, the firm has launched the NVIDIA Omniverse, a platform of APIs, SDKs, and services that enable developers to integrate OpenUSD, NVIDIA RTX rendering technologies, and generative AI into existing software tools and simulation workflows for industrial and robotic use cases.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Shanda Asset Management’s Stake: $186.3 million
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. There are multiple strengths that make this company a standout choice for investors. The first thing that may appeal to investors is the financial growth of the company, illustrated in the report for the third quarter of 2024. For instance, operating income increased to $17.4 billion in the third quarter, compared with $11.2 billion in the third quarter of 2023. Additionally, the International segment operating income was $1.3 billion, compared with an operating loss of $0.1 billion in the third quarter of 2023. Amazon Web Service (AWS) segment operating income was $10.4 billion, compared with an operating income of $7 billion in the third quarter of 2023. Moreover, AWS has announced plans to invest an estimated $11 billion to expand its infrastructure in Georgia to support cloud computing and AI technologies.
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Amazon.com, Inc. (NASDAQ:AMZN) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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