In a significant change, Nvidia Corporation NVDA he passed it Tesla Inc. TSLA as the most sought after stock among retail investors.
What happened: According to a note from Research VandaRetail investors favored Nvidia over Tesla, with purchases of the former’s shares topping $1 billion in a ten-day period, Business Insider reported.
On the other hand, Tesla’s retail stock purchases amounted to just under $500 million over the same period. This shift in popularity is especially noteworthy as Nvidia stock is up 60% year to date, while Tesla stock is down 18%.
“Goodbye TSLA, there’s a new sheriff in shopping town. Given the recent challenges for Musk’s company and slowing stock price performance, retail investors have continued to progressively shift their buying in favor of NVDA of late,” Vanda Research said.
See also: Elon Musk responds after bakery owner claims Tesla ordered 4,000 mini cakes then canceled order without paying, causing $16,000 loss
Vanda Research noted that Nvidia’s growing popularity among retail investors is indicative of a broader shift in retail sector sentiment. The firm said: “NVDA looks more and more like the new indicator of overall retail sentiment every day.”
“The ‘scary’ part is that despite the recent hype around all things AI and semiconductors, current retail flows into NVDA stock have simply reached the lowest point seen in TSLA stock in 2023,” he said Vanda Research.
Because matter: This shift in retail investor sentiment comes at a time when Nvidia stock has seen a notable rally. The company recently surpassed the $2 trillion market cap following a series of record highs for the S&P 500 and Nasdaq 100 indexes.
Notably, Nvidia’s exceptional performance was driven by strong earnings growth from sales of its H100 GPU chips, a trend that was praised by Tesla’s CEO Elon Musk. Despite this, some retail investors may still be reluctant to invest in Nvidia due to its record stock price.
On the other hand, Tesla, which has been the best choice for AI investment Cathie Woodhas seen a decline in retail investor interest, due to the company’s recent challenges and slowing share price performance.
Read next: Wall Street’s ‘Dean of Valuation’ thinks you’re ‘setting yourself up to lose’ with Nvidia by playing ‘the plausible game’ – says this is what investors need to ask themselves before jumping in
Disclaimer: This content was partially produced with the help of Benzinga Neuro and has been reviewed and published by Benzinga Editors.
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