Retail traders bullish, big money cautious ahead of Nvidia results

Reuters

Retail traders bullish, big money cautious ahead of Nvidia results

2024 8월 28, 오후 3:02 GMT

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RETAIL TRADERS BULLISH, BIG MONEY CAUTIOUS AHEAD OF NVIDIA RESULTS

Retail investors are showing bullish impulse towards U.S. tech stocks, while hedge funds and active equity mutual funds appear more cautious ahead of Nvidia NVDA.O results, according to a J.P.Morgan report.

Individual traders interest in Nvidia was evidenced by strong overall equity fund inflow especially in Nvidia-linked funds, including in VanEck Semiconductor ETF SMH.O which counts the dominant AI chip supplier as its top holding, and single stock leveraged ETFs linked to Nvidia NVDL.O, JPM strategists said.

Meanwhile, hedge funds appeared to have trimmed their Magnificent 7 and Nvidia exposure in second quarter and third quarter from the first quarter 2024 peak, the strategists added.

Active equity mutual fund managers funds hold modestly lower weights to the Magnificent 7 than passive funds, and they are more notably "underweight" Nvidia as well as Apple, according to JPM strategists.

Stakes are high heavyweight Nvidia's results, a bellwether for AI demand, with options pricing indicating a move of around 9.8% in the company's shares on Thursday, a day after it reports earnings.

"With markets being back in striking distance of all-time highs, the Nvidia report could serve as a pivotal moment for stocks as we head into September," said JJ Kinahan, chief executive officer of IG North America.

"With so much riding on what Nvidia has to say, it's very easy to see how markets could be facing a make-or-break moment, at least in the short term."

(Medha Singh)

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