Last year, a hedge fund with a return rate of 42% cleared its stake in Nvidia. The founder once claimed it was the best stock pick of his life.

Jonah Cheng, the founder of a hedge fund, once called NVIDIA the best stock pick of his career. However, he has now sold off all his holdings in the company, as he is no longer as confident in the future of the $3.5 trillion chip manufacturer. The former UBS analyst's tech fund had a return of 42% last year, making him one of the investors who benefited from NVIDIA's soaring stock price over the past decade. When he founded the Captain Global Fund in 2016, one of the first stocks he bought was NVIDIA, and he made additional investments in the company multiple times. Now, he is no longer as assured. Cheng sold off his NVIDIA shares in the first quarter, citing concerns about delays related to the GB200 server cabinet. He pointed to inventory risk, unadjusted profit forecasts, competition from custom chips, among other reasons, for avoiding the stock.