Retail traders are pouring billions of dollars into Nvidia shares this year, with Vanda Research reporting that retail investors sent almost $30 billion into the company on balance. The influx of funds has propelled Nvidia to become the most-bought equity by retail traders on net in 2024.
Nvidia’s leadership in artificial intelligence (AI) has been a key driver of its popularity among retail investors. The company’s impressive performance and price gains have made it an attractive investment opportunity, with many individual traders contributing to the nearly nine-fold jump in net inflows from 2021.
“I think that AI is only going to keep rising exponentially,” said Prajeet Tripathy, a recent college graduate who has invested heavily in Nvidia. Other investors, such as Genevieve Khoury, have also seen significant returns on their investments and plan to hold onto their shares until they can cash them out.
While Nvidia’s retail ownership is substantial, it hasn’t led to the same level of price-to-earnings multiple growth as Tesla and Palantir. However, Morningstar equity strategist Brian Colello notes that Nvidia has “fairly significant” volatility for a stock of its size, which underscores the role retail traders can play in driving share prices.
As 2024 comes to a close, some market participants are looking ahead to next year’s trends and predictions. Palantir CEO Alex Karp recently expressed his gratitude to individual investors who have taken an interest in the company, setting the stage for potential growth in 2025. With its strong leadership in AI and growing popularity among retail traders, Nvidia is poised to continue its upward trajectory.
Source: https://www.cnbc.com/2024/12/25/nvidia-sees-remarkable-influx-of-retail-investor-dollars-as-traders-flock-to-ai-darling.html