According to recent data from Vanda Research, Nvidia has surpassed Tesla as the most popular stock traded by retail investors. This shift in popularity comes as Nvidia's stock has surged 60% year-to-date, while Tesla has experienced an 18% decline.
Retail purchases of Nvidia stock over a ten-day period totaled nearly $1 billion, compared to just under $500 million for Tesla. This change in investor sentiment is significant, as Tesla has been a favorite among retail investors throughout 2023.
Nvidia's impressive performance can be attributed to strong earnings growth from the sale of its H100 GPU chips. In contrast, Tesla has faced challenges that have led to a decrease in its stock price.
Vanda Research noted that Nvidia now serves as an indicator of overall sentiment among retail traders. The firm stated that "NVDA looks every day more like the new bellwether of general retail sentiment." However, some investors may be hesitant to buy Nvidia stock at its current all-time high.
Despite the recent hype surrounding AI and semiconductor stocks, retail investors have not yet fully embraced Nvidia, with flows into the stock only matching the lowest point seen in Tesla stocks during 2023. This suggests that there may still be room for Nvidia to win over more retail investors in the future.
In summary, Nvidia's rise in popularity among retail investors reflects its strong performance in the market, while Tesla has faced challenges that have led to a decline in its stock price. Retail sentiment towards Nvidia is growing, but the stock may still have hurdles to overcome in order to fully capture the attention of retail investors.