The tech industry is having a tough time in 2025. Many big tech companies are losing value, and their stock prices are falling. Investors are worried about the economy, inflation, and new trade rules, that’s making things harder for the tech market. But billionaire fund manager Stephen Yiu is staying the course with a surprising new strategy: he’s selling Meta and Microsoft stock, and buying more Nvidia.

Yiu, who oversees the $1.5 billion Blue Whale Growth Fund on behalf of billionaire investor Peter Hargreaves, made headlines this month with a bold portfolio shake-up. Tech stocks have powered U.S. markets over the past two years, but 2025 has been a different story, with economic clouds forming, high inflation, and trade tensions rising.

Why the Sudden Sell?

Tech makes up over 30% of the S&P 500, so it’s no surprise that the index has dropped 10% year-to-date. Leading the losses are giants like Nvidia, which went down 24%, and Meta Platforms, which went down 14%.Earlier this month, former President Trump unveiled new tariff plans designed to encourage domestic manufacturing. But the tariffs were steeper than expected, triggering a sharp sell-off in tech stocks and raising fears of a new trade war, Yiu reacted swiftly, exiting long-held positions in Meta Platforms (META) and Microsoft (MSFT). Meta had been a core holding since 2023, making up about 3% of his fund. Yiu explained

“When you have a global business in digital advertising and a global slowdown and economic uncertainty, then it does impact the top line,”

Why Nvidia? The AI Boom Keeps Growing

Even though the overall stock market is having a tough year, Stephen Yiu is betting big on Nvidia (NVDA). He believes the company will keep growing thanks to the strong demand for artificial intelligence (AI).

Since 2022, many companies have been buying Nvidia’s powerful AI chips, like the H100, H200, and the newer Blackwell chips. These chips are good at handling the huge amount of data needed to train and run AI systems. A big part of that growth comes from tech giants like Amazon, Microsoft, and Google Cloud, also known as hyperscalers. These companies spent a massive $192 billion in 2024 to upgrade their cloud and data systems for AI.

Even Meta (the company behind Facebook, Instagram, and WhatsApp) spent $39 billion in 2024 on new tech, up from $27 billion the year before. All of this spending is helping Nvidia grow even faster.

A Turning Point for Tech?

While Nvidia is still flying high on AI demand, cracks are showing in the broader economy.

  • Unemployment is ticking up.
  • Consumer sentiment has dropped.
  • Inflation remains stubbornly high.
  • A Global Trade Fight Could Be Coming

But Warning Signs Remain

Still, storm clouds are forming. Rising unemployment, stubborn inflation, and trade tensions could slow down the global economy. That might cause big tech firms to cut back on spending and pause new projects. Investors are keeping a close eye on how this plays out, and on what fund managers like Yiu do next.