For some investors, earnings season is the most-exciting period of each quarter. Over a span of six weeks, Wall Street's most-influential businesses lift their proverbial hoods and give investors an inside look at what's going on.
But it can be argued that the release of Form 13Fs by financial institutions is even more telling of Wall Street's innerworkings.
No later than 45 calendar days following the end to a quarter, institutional money managers with at least $100 million in assets under management (AUM) are required to file Form 13F with the Securities and Exchange Commission. A 13F provides investors with an over-the-shoulder view of what Wall Street's premier money managers were up to during the previous quarter (the first quarter, in this instance). It offers a concise snapshot of all buying and selling activity, which helps investors figure out which stocks and trends are piquing the interest of the market's most-successful asset managers.
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Though Warren Buffett is the most-followed of all asset managers, he's far from the only billionaire money manager that investors keep close tabs on. Another closely tracked billionaire fund manager that garners plenty of attention is Tiger Global Management's Chase Coleman, who ended March 2025 overseeing almost $26.6 billion in AUM.
The reason Coleman draws so much interest is because he's a growth-seeking investor at heart. You'll find a number of high-growth tech stocks, along with artificial intelligence (AI) companies, among his funds' 45 holdings.
What stands about the Tiger Global's latest 13F is that Coleman added to his stake in AI colossus Nvidia (NVDA -1.30%) for the first time in more than a year, while simultaneously kicking two other high-performing AI stocks to the curb.
Chase Coleman ups Tiger Global's stake in Nvidia for the first time since the end of 2023
Accounting for Nvidia's historic 10-for-1 forward stock split in June 2024, Tiger Global Management closed out 2023 with 9,683,550 shares of Wall Street's AI darling. It ended 2024 with the exact same number of shares. But during a tumultuous first quarter for tech stocks in 2025, billionaire Chase Coleman picked up an additional 1,284,000 shares of Nvidia (a roughly 13% increase).
Arguably the top reason investors have piled into Nvidia since the start of 2023 is its graphics processing unit (GPU) market share dominance in AI-accelerated data centers. The company's Hopper (H100) and next-generation Blackwell GPU architecture account for the lion's share of the chips being used to power generative AI solutions and train large language models in high-compute data centers.
On the surface, Nvidia's valuation has also become more palatable as it's been able to grow into its rapidly rising market cap. Based on consensus earnings per share (EPS) expectations for fiscal 2027 (Nvidia's fiscal year ends in late January), Nvidia is trading at 24 times forward-year earnings, as of the closing bell on May 16. But during tumultuous trading in March, Nvidia's forward price-to-earnings (P/E) ratio dipped to approximately 19.
To build on this point, Nvidia's nearly 30% peak-to-trough decline in the first quarter represents its steepest drop from an all-time high since the 2022 bear market. It may have been carrot that lured Coleman to take a bite.
While there's no denying that Nvidia's returns have been special, there are also clear concerns about its future. Growing direct and internal competition threaten to gobble up precious AI data center real estate, which can further weigh down its gross margin.
History hasn't been kind to next-big-thing investments, either. For more than 30 years, every game-changing innovation has worked its way through a bubble-bursting event early in its expansion phase. No company would be more directly hurt if the AI bubble bursts than Nvidia.
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Datadog gets sent to the doghouse
But while Chase Coleman was busy loading up shares of Nvidia for his fund, he was also sending two high-growth AI stocks to the chopping block. The first of these big-time AI stock sales is cloud-based observability and security platform Datadog (DDOG -1.08%). Tiger Global's 13F shows that all 979,400 shares, valued at nearly $140 million to end 2024, were dumped during the first quarter.
The allure of Datadog as an investment has been its outsized growth rate, which has consistently topped 20%, as well as its recurring profits. It was a particularly popular name during the height of the COVID-19 pandemic given the observability aspect of its platform to oversee public and private clouds. In other words, it was one of the most ideally positioned work from home stocks.
Datadog also benefited from landing bigger fish. Investors consistently rewarded the company with a premium valuation due to its ability to snag customers generating at least $1 million in annual recurring revenue (ARR). Though bigger isn't always better, larger contracts for Datadog do have a tendency to lead to juicier margins.
Chase Coleman sending Datadog to the doghouse likely has to do with its tempered 2025 growth outlook, as well as its valuation premium, relative to its outlook.
When Datadog issued its 2025 full-year outlook in mid-February, it called for a midpoint of $3.185 billion in sales and $1.65 to $1.70 in adjusted EPS. For the sake of comparison, Wall Street's consensus had been for EPS of $2.04 and sales of around $3.24 billion. The cherry on top is that the reported 462 customers generating ARR of at least $1 million in 2024 -- a 17% year-over-year increase -- was below expectations, as well.
While Datadog continues to grow rapidly, few (if any) mistakes will be tolerated for a company already valued at close to 13 times forecast sales and 69 times projected EPS in 2025.
It really does cost an "Arm" and a leg
The second fast-paced AI stock billionaire Chase Coleman gave the heave-ho to is intellectual property (IP)-driven semiconductor company Arm Holdings (ARM -1.17%). Tiger Global Management closed out 2024 with 300,000 shares of Arm in its portfolio, but ended March with no shares remaining.
Arm's claim to fame is its virtually insurmountable moat as a royalty and licensing company. Instead of directly producing and selling chips, Arm develops and designs GPUs, central processing units, and systems IP that other companies, like Nvidia, use when designing their own chips. With minimal recurring expenses, Arm can sit back and collect royalty and licensing fee revenue at an enviable margin.
The great thing about Arm's operating model is that it's somewhat agnostic to economic downturns. With the AI revolution rapidly advancing, demand for more energy-efficient chips will keep Arm busy. Further, without any physical chip supply, Arm doesn't have to worry too much about the push-pull dynamics of oversupply and shortage that occurs in the semiconductor industry.
So, why did Coleman shelve his fund's shares of Arm Holdings if the company is so perfectly positioned to benefit from its unique IP? The answer might lie with the stock costing an arm and a leg.
As of this writing on May 16, a share of Arm is trading at a whopping 76 times forecast EPS for 2025, as well as trading at 30 times projected sales this year. Companies that can sustain moats absolutely deserve a valuation premium -- but 30 times projected 2025 sales is a tough pill to swallow.
Historically, there hasn't been a company with a market cap north of $100 billion that's been able to sustain a price-to-sales (P/S) ratio of 30 or above for any significant length of time. We've witnessed market leaders of next-big-thing trends with P/S ratios of 30 or higher all eventually tumble. There's no reason to believe Arm will buck this trend.
