As AI’s prominence grows, Nvidia has become the go-to stock for retail investors in 2024. Michael MacGillivray, a 25-year-old from Michigan, is among many who poured money into the chipmaker, contributing to nearly $30 billion in net retail inflows, per Vanda Research. This makes Nvidia the most-bought stock of the year, surpassing the SPDR S&P 500 ETF and dethroning Tesla as a retail favorite.
Nvidia’s stock has soared over 180% in 2024, propelling its market cap beyond $3 trillion and securing its spot as the Dow’s top performer. Retail investors have significantly increased their Nvidia holdings, now averaging over 10% of their portfolios, up from 5.5% earlier this year.
Social media marketer Genevieve Khoury, who began investing in Nvidia in 2022, plans to hold her shares for major future purchases. “It kept going up and up,” she said. Despite recent volatility, investors like recent graduate Prajeet Tripathy remain optimistic about Nvidia’s AI leadership.
Inflows spiked around earnings reports and a 10-to-1 stock split earlier this year, while a late-August watch party in NYC highlighted retail enthusiasm. Though Nvidia’s price-to-earnings multiple hasn’t inflated like Tesla’s, Morningstar notes its stock volatility is “jaw dropping.”
Looking ahead, Palantir is gaining traction among retail investors. The software stock surged nearly 380% in 2024, outperforming Nvidia. CEO Alex Karp’s recent message to small investors reflects the company’s growing appeal.
Khoury recently added Palantir to her portfolio, hoping for another Nvidia-like success. Confident in her strategy, she quipped, “Sure, I don’t know what I’m talking about, but I do have Nvidia. Probably, my portfolio looks better than yours.”
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