Nvidia shares soar: strong support from institutional investors, retail investors wait and see
According to news in the morning of June 1, Beijing time, data show that Nvidia's share price has soared and its market capitalization is close to $1 trillion, but retail investors have hardly participated and have been watching because they are more cautious because they are worried about the recession.
Lucas Mantle, an analyst at Vanda Research, believes that while Nvidia stock is still one of the favorite stocks for individual investors, institutional investors are mainly bullish on AI as a whole, and it is their support that has caused Nvidia's share price to soar in three days, a surge not seen in more than 20 years.
Nvidia's retail stock purchases halved on average to $27.9 million in May compared with February, but it is still the fourth most traded stock by individual investors. Lucas Mantle said: "money market funds now have very good returns, do not have to pay anything, on the contrary, the stock market is now very risky."
Retail investors (that is, retail investors) bought a record amount of US stocks (total purchases minus total sales) in the first quarter, but then stayed on the sidelines because of the pressure on banks and the downturn in the economy.
According to JPMorgan Chase, the favorite stock for retail investors used to be Tesla, which was No. 1 for more than six months in a row, and now Nvidia has broken Tesla's lead.
The total value of retail investor trading in Nvidia shares climbed to $2.5 billion last Thursday, but net purchases were only $43 million, according to Vanda Research. JPMorgan Chase said Nvidia was the third-most traded stock by retail investors, but buying and selling were roughly the same, meaning retail investor interest declined compared with the first quarter.
