Billionaire hedge fund manager Steve Cohen has made a striking portfolio pivot, cutting his stakes in two AI giants while doubling down on a struggling medical device company.
Cohen’s Point72 Asset Management trimmed its Amazon (NASDAQ: AMZN) position by 6% and slashed its Nvidia (NASDAQ: NVDA) holdings by a significant 24% during the first quarter of 2026.
At the same time, Cohen dramatically increased his stake in Boston Scientific (NYSE: BSX) by 50%, signaling a bold contrarian bet on the beaten-down healthcare company.
Both Amazon and Nvidia have underperformed the broader market in 2026, gaining only around 5% year to date compared to the S&P 500’s roughly 10% gain over the same period.
The trimming of these positions follows extraordinary multi-year runs, with Amazon up over 560% and Nvidia surging more than 16,000% over the past decade.
The artificial intelligence trade that fueled those massive gains now appears to be rotating, with early beneficiaries potentially giving way to infrastructure-focused companies that support the AI build-out.
Boston Scientific, which makes medical devices for cardiac care and medical-surgical applications, has seen its stock fall over 50% year to date, making Cohen’s increased investment a classic value play.
The company’s cardiac care segment accounts for 66% of revenues, while medical-surgical products contribute the remaining 34%, with demand for both considered largely non-discretionary.
Boston Scientific posted strong first-quarter 2026 organic sales growth of 9.4%, but its outlook rattled investors, with second-quarter organic growth potentially slowing to as low as 5%.
The company also lowered its full-year adjusted earnings guidance range from $3.43 to $3.49 per share down to a new range of $3.34 to $3.41, with the new high end falling below the old low end.
That guidance cut is the primary reason investor sentiment has soured sharply, with the stock now trading at a price-to-sales ratio of 3.2x, well below its five-year average of 6x.
Its price-to-earnings ratio of 19x is similarly compressed compared to its longer-term average of 64x, suggesting the stock could offer significant upside if the company’s fortunes recover.
Cohen’s increased position in Boston Scientific, despite the falling share price, reflects a long-term conviction that this industry leader will eventually emerge from its current operational difficulties.
With a market cap exceeding $60 billion, Boston Scientific is not a company that can be turned around quickly, but its entrenched market position gives it a strong foundation for recovery.
Investors watching Cohen’s moves through Point72’s 13F filings will now closely monitor whether this contrarian healthcare bet pays off as the year progresses.
