Nvidia Overtakes Tesla As The Most Popular Stock Among Retail Investors: '...There's A New Sheriff In Retail Town'

In a significant shift, Nvidia Corporation NVDA has surpassed Tesla Inc. TSLA as the most sought-after stock among retail investors.

What Happened: According to a note from Vanda Research, retail investors have been favoring Nvidia over Tesla, with the former’s stock purchases exceeding $1 billion over a ten-day period, reported Business Insider.

On the other hand, Tesla’s retail stock purchases amounted to just under $500 million during the same period. This shift in popularity is particularly noteworthy as Nvidia’s stock has surged by 60% year-to-date, while Tesla’s stock has seen an 18% decline.

“So long TSLA, there’s a new sheriff in retail town. Given recent challenges for Musk’s company and lagging shares price performance, retail investors have continued shifting their purchases progressively in favor of NVDA lately,” Vanda Research said.

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Vanda Research noted that Nvidia’s growing popularity among retail investors is indicative of a broader shift in retail sentiment. The firm stated, “NVDA looks every day more like the new bellwether of general retail sentiment.”

“The ‘scary’ part is that despite the recent hype around anything AI and semiconductors, current retail flows into NVDA shares have merely matched the lowest point seen in TSLA stocks during 2023,” Vanda Research said.

Why It Matters: This shift in retail investor sentiment comes at a time when Nvidia’s stock has been on a remarkable run. The company recently surpassed a $2 trillion market cap following a series of record-breaking highs for the S&P 500 and Nasdaq 100 indices.

Notably, Nvidia’s exceptional performance has been driven by its strong earnings growth from the sale of its H100 GPU chips, a trend that has been praised by Tesla CEO Elon Musk. Despite this, some retail investors may still be hesitant to invest in Nvidia due to its all-time high stock price.

On the other hand, Tesla, which was a top pick for AI investment by Cathie Wood, has seen a decline in retail investor interest, due to the company’s recent challenges and lagging 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 Before Getting In

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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