Nvidia Attracts Nearly $30 Billion in Retail Investment, Being Most Net-Bought Stock in 2024

 

Nvidia $NVDA has been the stock with the most net purchases by retail investors in 2024, as of Dec. 17th. Retail investors have put nearly $30 billion into Nvidia in 2024, according to Vanda Research.

 

Nvidia received almost twice the net capital inflows of the SPDR S&P 500 ETF Trust, a broad benchmark for US stocks, being on track to take over Tesla's $TSLA spot as retail investors' favorite. Marco Iachini, senior vice president at Vanda Research, said Nvidia stole Tesla's thunder through its share price gains.

 

The AI chip giant has attracted investors throughout the year. Vanda Research's data shows that Nvidia's weighting in home trader's portfolio has grown from 5.5% to over 10% in 2024. Since its inclusion in the Dow Jones last month, Nvidia has been the best performer among the index's 30 constituent stocks in 2024. Nvidia is expected to end 2024 by rising over 180% driven by its market capitalization of over $3 trillion.

 

Additionally, Nvidia has attracted more than 885% more net buying from retail investors than it did three years ago. Gil Luria, head of technology research at D.A. Davidson, said Nvidia had an outstanding acceleration that turned retail investors into its shareholders. Gil Luria concluded that Nvidia's better-than-expected results are not enough to keep the stock price rising rapidly in 2024, estimating that Nvidia's stock reached a more balanced and reasonable level.

 

Because net buying did not push up Nvidia stock's price-to-earnings ratio, Morningstar equity strategist Brian Colello commented that Nvidia has great volatility.

 

For retail investors, they have followed Nvidia with interest. In August, investors held a party in New York focusing on Nvidia's earnings report.

 

As for the future needs of those investors, Marco Iachini said that massive capital flowing into ETFs could ease investors' concerns about withdrawing from safe broad index funds. He said consistent large inflows into tech stocks could reflect traders chasing an ongoing bull market.

 

Marco Iachini added that it is surprising that Nvidia has attracted many typical US investors through strong returns alone.

 

Lastly, Marco Iachini noted that Palantir $PLTR gained retail investors' favor in the fourth quarter, potentially being a hit in 2025.

 

Palantir has become the ninth most popular stock for 2024, according to Vanda Research. Palantir's shares have soared nearly 380%, making it the best-performing stock in the S&P 500.