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The artificial intelligence trend has supercharged the growth of many tech stocks over the past year, including semiconductor giants Nvidia (NASDAQ: NVDA) and Arm Holdings (NASDAQ: ARM). So far in 2024, Nvidia shares climbed 144%, and Arm stock rose 91%.

Below, I've outlined why D.E. Shaw's recent sale of Nvidia and purchase of another chip stock, Broadcom (NASDAQ: AVGO), may look like a savvy move in the long run. Last quarter D. E. Shaw sold 12.1 million shares of Nvidia, reducing its position by about 51% in the process.

Apple and Nvidia have both announced major share buyback programs, but I see one of these artificial intelligence (AI) players as the obvious winner in the long term.

Artificial intelligence (AI) stocks have been a driving force behind the S&P 500 's impressive performance recently. The benchmark index has climbed over 21% year to date and gained more than 34% in the past 12 months.