Nvidia Stock: Major Investors Reduce Stakes Despite Market Gains

Nvidia's stock has experienced a rollercoaster ride in 2024, with impressive gains of over 130% since the start of the year. However, recent developments have raised eyebrows in the investment community. Despite the company's strong performance and its pivotal role in the artificial intelligence sector, several prominent U.S. investment firms have significantly reduced their holdings in the chip giant.

Institutional Selloff Raises Questions

The most notable move came from Fidelity, Nvidia's fourth-largest shareholder, which cut its position by nearly 20%. Other financial heavyweights, including GQG Partners, T. Rowe Price, and Citadel Advisors, have also offloaded substantial portions of their Nvidia shares. While the exact reasons for this institutional exodus remain unclear, speculations range from profit-taking to growing concerns about Nvidia's long-term market position. Interestingly, despite this large-scale selling by institutional investors, Nvidia's stock price has remained relatively stable, with some experts suggesting that ETF providers may have absorbed some of the sold shares to balance their market-weighted products.