AI Giant’s Institutional Backing Tested: PKO Cuts NVIDIA Stake 13.3% to $56.68M

As the AI infrastructure boom fuels NVIDIA’s meteoric rise, the first cracks in institutional unanimity are appearing. A 13.3% cut by a significant holder and a director sale suggest that some smart money is locking in gains, testing whether the AI narrative alone can support ever-higher valuations.

PKO Investment Management Joint Stock Co reduced its position in NVIDIA by 13.3% in the first quarter of 2026, selling 50,000 shares and leaving a $56.68 million stake that remains its second-largest holding. This disclosure, part of routine 13F filings, arrives at a time when NVIDIA’s stock price has experienced significant growth driven by AI demand, raising questions about institutional profit-taking and rebalancing. The filing shows PKO still holds 325,000 shares, but the reduction, however modest relative to total institutional ownership (65.27% of the float), is part of a broader pattern of mixed institutional activity. Some funds, like Longfellow Investment Management, boosted their positions by nearly 48%, while others like Lifetime Wealth Management established new small stakes, indicating continued but cautious interest.

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PKO Investment Management Joint Stock Co reduced its position in NVIDIA by 13.3% in the first quarter of 2026, selling 50,000 shares and leaving a $56.68 million stake that remains its second-largest holding.

The holding decline comes alongside a notable insider sale by Director Stephen C. Neal, who sold 15,500 shares at an average price of $215.73 on June 3, 2026, reducing his ownership by 11.77% to 116,135 shares. This insider transaction, disclosed alongside the 13F data, adds a cautious signal. Although the timing of the information release does not necessarily align with the trade dates—13F filings cover the quarter ended March 31—the director sale in June suggests continued valuation sensitivity at the top. For context, NVIDIA’s stock traded around $175 in late March, meaning PKO likely realized gains near that level, while the director sold at a higher price in June, underscoring that even when institutions trim, they may be locking in profits rather than expressing bearishness.

The broader market implications revolve around NVIDIA’s centrality to the AI infrastructure buildout. The stock has nearly quadrupled from its 2022 lows, and institutional profit-taking is expected. PKO’s stake size ($56.68 million) is not large enough to move markets, but it serves as a microcosm of the big-money dance. The fact that 65.27% of shares are institutionally owned means these quarterly flow shifts provide insight into how the smart money is positioning for the next phase of AI expansion. Other names mentioned, like Presidio Capital Management and Vision Financial Markets, added small amounts, demonstrating that for every seller there are incremental buyers. This fragmentation suggests a market searching for direction rather than a clear consensus.