retail investor flooding towards Nvidia (NVDA): AI star stock Nvidia 2024 surpasses SPY buying spree

Nvidia has become a darling of retail investors by 2024, with billions of dollars pouring into this AI giant from ordinary traders. According to a report by Vanda Research cited by CNBC, Nvidia has become the most purchased stock by retail investors this year, surpassing traditional market darlings such as TSL and SPDR S&P 500 ETF Trust (SPY).

AI revolution boosts investor confidence, every road leads to NVIDIA.

For many retail investors, Nvidia symbolizes the core driving force behind the current AI revolution. Michael MacGillivray, a 25-year-old investor from Michigan, describes his investment in Nvidia as inevitable. "Whenever you think of AI, it feels like all roads lead to Nvidia," said MacGillivray, who has invested thousands of dollars in the company this year. His viewpoint reflects a common trend among retail investors who see Nvidia as the cornerstone of the AI-driven future.

Beyond TSL: Nvidia Becomes the Focus

Nvidia will replace TSL in 2024, becoming the new favorite of retail investors, while TSL dominated the market in 2023. Marco Iachini, manager of Vanda Research, attributed this shift to Nvidia's stunning stock performance, which has surged by over 180% this year. Iachini pointed out, "Performance itself is the best explanation." Nvidia's stock surge has pushed its market value beyond 3 trillion USD, making it the second largest market cap company in the United States.

Retail investors add investment in Nvidia

Data from Vanda Research shows that Nvidia now accounts for over 10% of the average retail investor's portfolio, compared to just 5.5% in early 2024. This rapid growth highlights Nvidia's appeal to individual investors, with net inflows from retail investors into the stock increasing a staggering 885% over the past three years.

Retail investors enter the market massively during the downturn

Retail investors showed strong interest in Nvidia at key moments, including earnings releases and market downturns. According to Iachini, the stock saw a significant increase in inflows during Nvidia's quarterly earnings releases and the sharp market pullback in early August.

Despite some fluctuations in December, Nvidia's leading position in the AI field and its focus on innovation continue to attract optimistic retail investors.

The impact of retail investors on Nvidia's market performance is becoming increasingly significant.

Nvidia's stock has become an important component of retail investor portfolios, but its P/E ratio has not surged like other stocks that retail investors are enthusiastic about, such as TSL and Palantir. Brian Colello, a stock strategist at Morningstar, said that Nvidia's size and market influence make its stock price fluctuations noteworthy.

Some retail investor interest shifted to software stock Palantir

As 2024 draws to a close, while Nvidia remains the dominant force in the market, other stocks are also beginning to attract the attention of retail investors. Software company Palantir stood out in the fourth quarter and saw its stock price soar nearly 380% this year, making it the best performing stock in the S&P 500.

Palantir CEO Alex Karp even thanked retail investors on social media, praising their courage to go beyond traditional clichés.

As retail investor continues to embrace the AI craze, Nvidia remains a symbol of technological transformation and a beacon for those who want to connect their investment portfolios with an innovative future.

This article reports that retail investors are flocking to Nvidia (NVDA): AI star stock. Nvidia is expected to surpass SPY's buying momentum by 2024. This was first reported by Chain News ABMedia.