Nvidia sees 'remarkable' influx of retail investor dollars as traders flock to AI darling

Core Insights - Nvidia has become the most-bought equity by retail investors in 2024, with nearly $30 billion in net inflows, surpassing Tesla as the favorite stock among retail traders [2][3][5] Group 1: Retail Investor Trends - Retail investors have significantly increased their holdings in Nvidia, with the stock now representing over 10% of the average retail investor's portfolio, up from 5.5% at the start of 2024 [6] - Nvidia's retail inflows in 2024 are more than 885% larger than three years prior, indicating a rapid increase in retail ownership [7] - The stock has seen spikes in inflows around earnings reports and during market dips, reflecting strong retail interest [8] Group 2: Stock Performance - Nvidia's stock is tracking to finish 2024 higher by more than 180%, making it one of the elite companies with a market cap exceeding $3 trillion [5] - The company has gained admission to the Dow Jones Industrial Average and is the best performer in the index for 2024 [4] - Despite recent volatility, Nvidia continues to be viewed positively by investors due to its leadership in AI and innovation [10] Group 3: Market Dynamics - Nvidia's performance has outpaced the SPDR S&P 500 ETF Trust, marking the second consecutive year that a single stock has eclipsed the ETF in net flows [13] - The stock's price-to-earnings multiple has not increased as significantly as that of Tesla and Palantir, indicating a different market perception [12] - The retail investor enthusiasm for Nvidia has not led to the same level of price volatility as seen in other tech stocks, suggesting a more stable investment environment [12]