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NVIDIA Is Overtaking Tesla as Retail Investors' Top Choice

Wallstreet InsightWednesday, Dec 25, 2024 10:14 am ET

1min read

Data from Vanda Research shows that this year, retail investors have poured nearly $30 billion into NVIDIA. As of December 17th, it has become the most net-purchased stock by retail traders in 2024. The data indicates that NVIDIA's inflow of funds has increased nearly ninefold compared to 2021.

Compared to the SPDR S&P 500 ETF Trust, NVIDIA has received nearly twice as much inflow from such funds.

Marco Iachini, Senior Vice President at Vanda, stated: "NVIDIA turned out to be the one stock that kind of stole the show from Tesla because of impressive price gains."

This is the latest highlight for NVIDIA. For over a year, the artificial intelligence giant has been attracting investors of all sizes. The chipmaker has gained listing approval from the highly regarded Dow Jones Industrial Average.

So far, the index has been the best-performing of the 30 stocks since the beginning of 2024.

Despite trading instability in December last year, the stock prices of the Seven Sisters of the U.S. Stock Market are expected to rise by more than 180% by the end of 2024. This surge has propelled the stock to become one of the elite companies with a market value of over $3 trillion. NVIDIA has also become the second most valuable company in the United States.

Of course, this strong demand of NVIDIA's stock has led to the stock playing a larger role in the holdings of retail investors. Data shows that it is now the second-largest holding among retail investors, just behind Tesla.Furthermore, NVIDIA's net retail inflow in 2024 has grown by more than 885% compared to three years ago.

According to Iachini from Wanda, there tends to be a surge in capital inflow around NVIDIA's earnings reports this year. Retail investors also bought in early August when the stock market fell, which coincided with a broad market sell-off.

It is certain that as the stock has lost some momentum, the inflow has cooled to some extent.

Despite recent volatility, individual investors remain optimistic about the company's leadership in the field of artificial intelligence and focus on innovation.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.