Seasoned investor Steve Weiss has quit his positions in two of the market’s most formidable titans: Amazon.com Inc (NASDAQ: AMZN) and Nvidia Corp (NASDAQ: NVDA).

Despite the seismic news of Amazon investing as much as $50 billion in OpenAI, the founder and managing partner of Short Hills Capital is stepping back.

His decision reflects a calculated pivot away from high-flying “Mag 7” momentum, opting instead for a strategy rooted in long-term supply chain dominance and a cautious look on AI labour revolution.

Why Steve Weiss sold Nvidia stock

For the veteran investor, the decision to dump Nvidia shares isn’t about the company’s failure, but the erosion of its absolute dominance.

Speaking with CNBC, Weiss noted the artificial intelligence stock has been hovering around $190, signaling a near-term ceiling.

He trimmed his stake in the chipmaker primarily because of “competition coming from all sides.”

Weiss specifically pointed to the OpenAI-Amazon partnership and the rise of Trainium chips as a sign that the industry is moving toward specialized hardware.

“You can buy chips that are just dedicated to the purpose that you need them for,” Weiss explained, suggesting Nvidia’s high-cost, general-purpose GPUs may no longer be the only game in town.

With giants likes Google, Microsoft, Apple, and Meta Platforms developing their own silicon, the scarcity premium that once drove NVDA stock to the moon is beginning to evaporate.

According to Steve Weiss, the AI darling is stuck in neutral as the moat around its hardware begins to look more like a bridge. Wall Street analysts, however, disagree – with their average price target calling for a more than 45% upside from here.

Why Steve Weiss sold Amazon stock

While Amazon’s massive investment in OpenAI made headlines – Weiss sees it as a double-edged sword featuring high capital expenditure and a delayed payoff.

On “Halftime Report”, he cited CEO Andy Jassy’s transparency regarding the timeline, noting “we are not going to see a return on this money for up to 24 months”.

For a trader looking for immediate efficiency, this two-year wait is a deterrent. However, his most provocative reason for unloading Amazon shares is a philosophical break from historical economic trends.

Unlike previous industrial shifts like the steam engine, Steve Weiss fears AI won’t create new jobs. “I think you’ll see massive job losses instead,” he warned.

According to him, the productivity gains from AI “inures much more to enterprise” than workers.

Citing examples like Jack Dorsey’s staff cuts – Steve Weiss views Amazon stock’s future through a lens of societal and economic friction that could dampen consumer-led growth.

His view on AMZN stock is also contrarian, given the consensus rating on it sits at “buy”, with the mean price target of about $280.