Nvidia Bought by Retail Investors Worth 43 Trillion Won... Top U.S. Net Purchase Stock This Year

Jumped from 4th Place in Last Year's Individual Net Buying Stocks
Tesla Ranks 3rd with $14.7 Billion Net Inflow

This year, the stock most purchased by retail investors in the U.S. stock market was Nvidia, the "AI superstar." The purchase volume exceeded 43 trillion won. As the AI era begins and the industrial landscape rapidly reshapes, funds are pouring into AI-related stocks, including Nvidia.

On the 25th (local time), U.S. economic media CNBC reported, citing market research firm Vanda Research, that as of the 17th, the net purchase amount of Nvidia by individual investors in the New York Stock Exchange this year totaled $29.8 billion (approximately 43.5 trillion won), ranking first among all stocks.

Last year, Nvidia attracted $11.4 billion, ranking fourth in net purchases by individual investors, but within a year, the inflow of funds surged dramatically, jumping three ranks. Compared to 2021, the net purchase amount by individual investors increased ninefold.

Nvidia's net purchase amount by individual investors was about twice as much as the second most net purchased stock this year, the 'SPY Exchange-Traded Fund (ETF)' ($15.3 billion). The SPY ETF's returns are determined by the movement of the S&P 500 index, a representative U.S. stock index.

Following that, Tesla, the electric vehicle company that was the top net purchased stock by individual investors in 2023, ranked third this year with a net purchase amount of $14.7 billion. The 'Invesco QQQ Trust ETF,' which tracks the Nasdaq index, and semiconductor company AMD recorded $9.8 billion each, ranking fourth and fifth among the most purchased stocks by individual investors.

Marco Iacchini, Senior Vice President of Vanda Research, evaluated, "Nvidia has emerged as the only stock that has dominated popularity by surpassing Tesla with impressive price gains," adding, "Its performance alone is sufficient, and no further explanation is needed."

Nvidia's stock price surged 180% over the past year, closing at $140.22 on the 24th, up from around $50 at the end of last year and early this year. Since April 8, it officially replaced Intel in the Dow Jones Industrial Average. Vanda Research estimated that Nvidia's share in individual investors' portfolios expanded from 5.5% at the beginning of this year to over 10% currently.

Tesla, the third most net purchased stock by individual investors this year, also saw its stock price rise 86% since the beginning of the year. Although it fell to the $140 range in April due to a slowdown in the electric vehicle market growth, the stock soared 84% after the presidential election on the 5th of last month, as Tesla CEO Elon Musk emerged as a close associate of then-President-elect Donald Trump.

U.S. investment banks are raising their target prices for Nvidia, the AI leader. Morgan Stanley maintained an "overweight" rating and "top pick" status among semiconductor stocks, stating that Nvidia's latest AI chip, Blackwell, will be the biggest topic in 2025. The target price was set at $166 per share, about 20% higher than the current price.

Morgan Stanley stated, "We believe there are significant concerns about Blackwell, some of which are exaggerated, and some cause short-term anxiety but are not important in the long term," adding, "Blackwell is likely to be the driving force behind sales in the second half of next year and could bring substantial upward momentum to Nvidia's stock price."