According to reports, data show that Nvidia shares have soared to a market value of nearly a trillion dollars, but retail investors have barely participated and have been on the sidelines, becoming more cautious as they fear a recession.
Vanda Research analyst Lucas Mantle believes that while Nvidia stock remains one of the most popular stocks among individual investors, it is mainly institutional investors who are bullish on AI when viewed as a whole, and it was their support that sent Nvidia shares soaring in three days, a spike that hasn’t been seen in more than 20 years.
Lucas Mantle said: “Money market funds have a very good return now and pay nothing, while the stock market now has a lot of risk. “
In the first quarter, retail investors in the U.S. stocks net buying (total purchases minus total sales) to a record high, but after they remain on the sidelines, because the banks under pressure, the economic situation is sluggish.
JPMorgan data show that the most popular stock for retail investors to trade was Tesla, which was No. 1 for more than six months, and now Nvidia has broken Tesla’s lead.
Vanda Research noted that the total value of retail investor transactions in Nvidia stock climbed to $2.5 billion last Thursday U.S. time, but net buying volume was only $43 million. JPMorgan, for its part, said Nvidia was the third-most traded stock by retail investors, but buying was essentially flat to selling, meaning retail investor interest was down compared to the first quarter.