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 (NASDAQ:NVDA) has surpassed Tesla Inc. (NASDAQ: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.
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.
