Despite popularity, Nvidia’s relative weighting in funds is still not aggressive, indicating cautious investor sentiment

  • Nvidia is the most owned semiconductor stock among active managers, but its relative weighting is still not aggressive.
  • BofA Global Research analyst Vivek Arya found that Nvidia has a 0.99x relative weighting compared to top-16 peers in IT and communication services sectors.
  • Nvidia’s stock is no longer the S&P 500’s top gainer this year.
  • Meta Platforms, Salesforce, Microsoft, Alphabet, Applied Materials, KLA Corp., Micron Technology, and Broadcom have higher relative weightings than Nvidia.

While Nvidia Corp. enjoys significant attention on Wall Street, BofA Global Research analyst Vivek Arya found that big investors are not overly bullish on the semiconductor name. The company has a 0.99x relative weighting compared to top-16 peers in IT and communication services sectors. Despite its potential for five times faster sales growth, Nvidia’s stock is no longer the S&P 500’s top gainer this year. Among other large tech names with higher exposure are Meta Platforms, Salesforce, Microsoft, Alphabet, Applied Materials, KLA Corp., Micron Technology, and Broadcom. However, Nvidia and Broadcom remain the most owned semiconductor stocks.

Factuality Level: 9
Factuality Justification: The article provides accurate information about the relative weighting of Nvidia stock among active managers and compares it with other technology names. It also mentions the ownership percentages of different semiconductor stocks and their performance. The information is based on a recent analysis by BofA Global Research analyst Vivek Arya, making it well-researched and objective.
Noise Level: 3
Noise Justification: The article provides relevant information about the relative weighting of Nvidia stock among active managers and compares it with other technology names. It also mentions the performance of Nvidia’s shares over time. However, it could benefit from more in-depth analysis or context on why Nvidia is relatively underweight despite its strong growth potential.
Public Companies: Nvidia Corp. (NVDA), Meta Platforms Inc. (META), Salesforce Inc. (CRM), Microsoft Corp. (MSFT), Alphabet Inc. (GOOG), Applied Materials Inc. (AMAT), KLA Corp. (KLAC), Micron Technology Inc. (MU), Broadcom Inc. (AVGO), Advanced Micro Devices Inc. (AMD)
Key People: Vivek Arya (analyst at BofA Global Research)

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Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses the financial performance of Nvidia Corp., a semiconductor company, and its relative weighting in comparison to other technology companies. It also mentions the impact on financial markets through changes in stock prices and ownership among active managers.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: No market move size mentioned.
Sector: Technology
Direction: Up
Magnitude: Small
Affected Instruments: Stocks

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