Artificial intelligence chip stock Nvidia Corp (NVDA) has experienced a continued rally in 2024, fueled by the ongoing AI frenzy. The 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 trimmed its holdings of the stock while increasing positions in Apple Inc (AAPL) and Tesla Inc (TSLA), which had been underperforming in the market, according to Barron’s. Additionally, DNB more than doubled its stake in Intel Corp (INTC). DNB manages around $88 billion in assets.
DNB’s stake adjustment coincided with reports of the French competition authority investigating Nvidia for alleged anti-competitive practices. Benoit Coeure, the agency’s president, stated during a press briefing with Reuters that Nvidia could face charges pending the outcome of the investigation.
Nvidia has faced skepticism from Aswath Damodoran, a professor at New York University Stern School of Business, who has repeatedly called the stock overvalued in recent months. Damodoran cautioned that achieving profitability might be more complex than believed.
Investors seeking exposure to Nvidia can consider Vanguard Information Tech ETF (VGT) and iShares S&P 500 Growth ETF (IVW).
As of the last check on Tuesday, NVDA shares traded slightly higher by 0.02% at $128.46 premarket.