nvidia's investor surge: nearly $30 billion in retail dollars
United States, Thursday, 26 December 2024.
NVIDIA Corporation has experienced a monumental influx of retail investor dollars in 2024, amassing nearly $30 billion. This surge is primarily driven by the company’s strong foothold in the AI sector, which has captivated everyday traders. As a result, NVIDIA has become the most-bought equity by retail traders, surpassing even the SPDR S&P 500 ETF Trust and nearing Tesla’s previous dominance. NVIDIA’s stock is set to end the year with a gain exceeding 180%, propelling its market capitalization past $3 trillion. Such impressive performance has also earned it a spot in the Dow Jones Industrial Average, where it emerged as the best performer of the year. The average retail investor’s portfolio saw NVIDIA’s weight increase significantly, reflecting the company’s growing influence. Analysts and retail investors alike express optimism about NVIDIA’s trajectory, with many seeing it as a cornerstone in the rapidly evolving AI landscape.
Record-breaking retail investment momentum
NVIDIA’s remarkable ascent in 2024 has made it the most sought-after equity among retail traders, with investments totaling nearly $30 billion as of December 17 [1]. This unprecedented influx has positioned NVIDIA ahead of traditional retail favorites, with inflows almost double that of the SPDR S&P 500 ETF Trust [1]. The company’s stock performance has been exceptional, projected to close 2024 with gains exceeding 180% [1].
Portfolio dominance and market valuation
The tech giant’s prominence in retail portfolios has grown substantially, with its weight increasing from 5.5% to over 10% throughout 2024 [1]. NVIDIA’s market capitalization has soared beyond $3 trillion [1][2], solidifying its position as one of the most valuable companies in the United States. The current stock price stands at $140.22, with a price-to-earnings ratio of 55.37 [3].
Analyst outlook and market sentiment
Wall Street analysts maintain a bullish stance on NVIDIA, projecting a potential rally of 25.69% [2]. The company’s stock is expected to reach $170 in Q1 2025 [2]. However, recent insider sales have sparked some concern among investors [2]. Despite a notable decline observed on December 21, with the stock trading at $268.84 [2], analysts remain confident in NVIDIA’s growth potential, particularly due to its dominant position in AI and gaming sectors [2].