NVIDIA Corporation (NVDA.US) receives strong interest from retail investors! Net purchases exceed $30 billion in 2024.

Vanda Research's data shows that retail investors have invested nearly $30 billion in NVIDIA Corporation (NVDA.US) stock this year. As of December 17, it has become the most purchased stock by retail investors in 2024. Compared to the SPDR S&P 500 ETF Trust, which tracks a broad benchmark of the US stock market, NVIDIA Corporation has received almost twice the net inflow of funds from retail investors. It is also poised to replace Tesla, Inc. (TSLA.US), which was the favorite of retail investors in 2023, attracting the most net purchases from retail investors that year. Vanda Research's Senior Vice President Marco Iachini said, "The fact is NVIDIA Corporation, to some extent, has taken the spotlight from Tesla, Inc. because of its impressive price gains." Stock Price Surge Over the past year, NVIDIA Corporation, the AI chip giant, has been attracting investors of all sizes. NVIDIA Corporation was included in the Dow Jones index last month and has been the best performing stock among the index's 30 components so far in 2024. Despite the volatility in December, NVIDIA Corporation's stock price is expected to rise by over 180% by the end of the year. This surge in stock price has propelled NVIDIA Corporation to become one of the elite companies with a market value exceeding $3 trillion. The company is currently the second largest company in the US market, only behind Apple Inc. (AAPL.US). This frenzy over NVIDIA Corporation's stock has led to a higher weighting in the holdings of retail investors. Vanda Research's data shows that NVIDIA Corporation's weighting in a typical household trader's portfolio is over 10%, compared to 5.5% at the beginning of 2024. The stock is now the second largest holding for ordinary retail investors, only behind Tesla, Inc. Furthermore, the net purchases by retail investors in NVIDIA Corporation in 2024 have increased by over 885% compared to three years ago. Gil Luria, Technical Research Director at investment bank D.A. Davidson, said, "As retail investors rapidly become a significant part of a company's ownership, NVIDIA Corporation stands out for this trend. This ascent is remarkable." Marco Iachini stated that around the time NVIDIA Corporation announces its quarterly earnings, there is often a surge in funds flowing into the stock. Retail investors were still buying NVIDIA Corporation's stock in early August when the US stock market saw a downturn. It is certain that as the stock loses some momentum, the inflow of funds has cooled off to some extent. Gil Luria mentioned that although NVIDIA Corporation's performance continues to exceed Wall Street's expectations, the extent of the outperformance is not enough to sustain a rapid increase in the stock price. He added that now the stock has reached a more "balanced" and "reasonable" level. While investment is largely a digital activity, the love for NVIDIA Corporation among market participants has spread into the real world. At the end of August, people gathered in New York for a well-documented attention party mainly focused on NVIDIA Corporation's earnings report. This event took place a few months after the stock's 10-for-1 split, which is often done to incentivize retail investors. Although retail investors hold a significant amount of NVIDIA Corporation stock, this factor has not inflated the stock's price-to-earnings ratio, as seen with Tesla, Inc. and Palantir (PLTR.US). However, Morningstar stock strategist Brian Colello notes that for a stock of NVIDIA Corporation's size, its volatility is "quite high," which may highlight the role of retail investors in driving the stock price. He said, "The fact that such a large company's stock price can fluctuate so much on any given day is sometimes surprising." What's Next for Retail Investors? 2024 is the second consecutive year that a stock has seen a net inflow of funds exceeding the SPDR S&P 500 ETF Trust. Marco Iachini stated that a significant inflow into ETFs can alleviate concerns of investors abandoning broad index funds seen as safe investments. He suggests that the significant inflow into large-cap tech stocks over the past two years may reflect traders chasing the ongoing bull market. Marco Iachini mentioned that although NVIDIA Corporation may have strong returns, it may be a surprising choice for the typical American domestic investor. He points out that despite NVIDIA Corporation CEO Jensen Huang often wearing his iconic leather jacket, the company lacks a "godlike" persona that would attract the attention of retail investors. Marco Iachini noted that Palantir gained favor with retail investors in the fourth quarter and may become popular in the new year. According to Vanda Research's data, the stock is the ninth most popular in 2024, surpassing Amazon.com, Inc. (AMZN.US), Alphabet (GOOGL.US), and MicMicrosoft Corporation (MSFT.US). Data shows that so far this year, Palantir's stock price has surged nearly 380%, making it the best-performing stock in the S&P 500 index.Je suis fatigu mais je dois continuer travailler.