Artificial intelligence chip stock Nvidia Corp has experienced a sustained rally in 2024, driven by the ongoing AI frenzy. The company’s stock has surged 167% year-to-date, attracting the attention of tech investor James Anderson, who predicts Nvidia could reach a market cap of $50 trillion within the next decade.
However, in the second quarter, DNB Asset Management made significant adjustments to its U.S.-traded big tech holdings. Despite Nvidia’s strong performance, DNB reduced its holdings of the company while increasing positions in Apple Inc and Tesla Inc, both of which had been underperforming in the market. DNB also more than doubled its stake in Intel Corp. With approximately $88 billion in assets under management, DNB’s stake adjustment coincided with reports of the French competition authority launching an investigation into Nvidia for alleged anti-competitive practices.
Benoit Coeure, the president of the French competition authority, stated during a press briefing that Nvidia could potentially face charges pending the outcome of the investigation. This development adds a layer of uncertainty to Nvidia’s future prospects.
Nvidia has also faced skepticism from Aswath Damodoran, a professor at New York University Stern School of Business. Damodoran has repeatedly expressed concerns about the stock being overvalued and has cautioned that achieving profitability may be more complex than believed.
Investors looking to gain exposure to Nvidia can consider Vanguard Information Tech ETF and iShares S&P 500 Growth ETF.
As of the last check on Tuesday, NVDA shares traded slightly higher by 0.02% at $128.46 premarket.