Amid a booming interest in artificial intelligence, Nvidia Corp. (NASDAQ:NVDA) has witnessed an unprecedented surge in retail investor dollars in 2024. This influx has positioned Nvidia as the most-purchased stock by individual investors, overtaking other popular equities.
What Happened: Retail traders have injected nearly $30 billion into Nvidia this year, as of Dec. 17. This amount is almost twice the net inflows compared to the SPDR S&P 500 ETF Trust (NYSE:SPY), a broad U.S. market benchmark, CNBC reported on Thursday
The allure of Nvidia for retail investors stems from its robust performance and leadership in artificial intelligence. The stock has surged over 180% in 2024, elevating it into the elite group of companies with market caps exceeding $3 trillion.
Vanda Research's Marco Iachini highlighted that Nvidia's stock has outperformed Tesla Inc. , the previous retail favorite, due to its remarkable price gains. Despite some recent volatility, Nvidia remains a crucial holding for many individual investors, with its weight in the average portfolio increasing significantly this year.
Why It Matters: The surge in retail investment in Nvidia comes ahead of the company's upcoming CES 2025 keynote is anticipated to be a major tech event. The keynote, led by CEO Jensen Huang, is expected to unveil the RTX 5000 Series GPUs, further solidifying Nvidia's position as a leader in the AI and tech space. This event is generating significant excitement in the tech community.
at a time when the company is making significant strides in the tech industry. Recently, Nvidia shares saw a boost following the Biden administration's announcement of a trade investigation into China's semiconductor industry. The investigation, focusing on China's production and trade practices for "legacy" semiconductors, could lead to increased U.S. tariffs, potentially benefiting U.S. semiconductor producers.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
