NVIDIA has become the favorite among retail investors in 2024. According to data from Vanda Research, as of December 17, retail investors have net purchased nearly $30 billion in NVIDIA stock, making it the most popular stock for retail fund inflows this year. This amount is almost double that of the SPDR S&P 500 ETF (SPY), which tracks the U.S. stock market, and it is expected to surpass Tesla, the favorite of retail investors in 2023.

Marco Iachini, Senior Vice President at Vanda Research, stated, “NVIDIA's price increase has been astonishing and has somewhat overshadowed Tesla.”

（Source：Vanda Research）

The Rise of NVIDIA

Over the past year, NVIDIA has attracted significant attention from investors. The company was recently added to the Dow Jones Industrial Average and has become one of the best-performing stocks among the index's 30 constituents. Despite some volatility in December trading, NVIDIA's stock price is projected to increase by over 180% by the end of 2024. Currently, its market capitalization has surpassed $3 trillion, making it the second-largest company in the U.S. by market cap, only behind Apple.

The proportion of retail investors holding NVIDIA has also significantly increased. According to Vanda’s data, NVIDIA's weight in retail portfolios has risen from 5.5% at the beginning of the year to over 10%. Currently, NVIDIA is the second-largest holding for retail investors, just behind Tesla. Additionally, net inflows of retail funds into NVIDIA have increased by over 885% compared to three years ago.

Enthusiasm Among Retail Investors

Vanda's research indicates that inflows from retail investors typically spike around the time of company earnings releases. This was particularly evident in early August 2023, when many retail investors seized the opportunity to buy NVIDIA shares during a general market downturn. Although the recent price surge has slowed, D.A. Davidson analyst Gil Luria noted that NVIDIA's stock price has returned to a more reasonable level. While its earnings continue to exceed Wall Street expectations, the extent of the outperformance is not sufficient to sustain rapid price growth.

Investor enthusiasm for NVIDIA extends beyond trading; it has also made its mark in real life. In August, a group of investors hosted a party in New York City to watch NVIDIA's earnings report, attracting significant retail participation. This event took place after the company executed a 10-for-1 stock split, which typically encourages more retail investor involvement.

In addition to NVIDIA, Palantir has also become a hot topic among retail investors. Vanda Research's data shows that Palantir performed exceptionally well in 2024, becoming the ninth-largest net purchased security, surpassing Amazon, Alphabet, and Microsoft. Palantir’s stock price soared nearly 380% in 2024, making it the best-performing stock in the S&P 500 index. Palantir CEO Alex Karp recently expressed gratitude to investors in a video, especially acknowledging those brave individual investors.

How to Trade on uSMART

After logging into the uSMART HK APP, click on the search icon at the top right of the screen. Enter the stock code, such as "NVDA.US" to access detailed information, trading history, and trends. Click the “Trade” button at the bottom right, select the “Buy/Sell” function, and submit your order after filling in the transaction conditions.

（Source: uSMART HK）