Artificial intelligence chip stock Nvidia Corp (NASDAQ:NVDA) saw a continued rally in 2024 as the AI frenzy is in no mood to slow down. The stock surged 167% year-to-date.
Tech investor James Anderson expects Nvidia to reach a market cap of $50 trillion within the next ten years.
However, in the second quarter, Nvidia saw DNB Asset Management make significant adjustments to its U.S.-traded big tech holdings.
DNB trimmed its holdings of Nvidia, despite the stock’s strong performance, while increasing its positions in Apple Inc (NASDAQ:AAPL) and Tesla Inc (NASDAQ:TSLA), which had been underperforming in the market, Barron’s reports.
Additionally, DNB more than doubled its stake in Intel Corp (NASDAQ: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, told Reuters during a press briefing that Nvidia could face charges pending the outcome of the investigation.
Nvidia has faced skepticism from New York University Stern School of Business Professor Aswath Damodoran over recent months, with the professor repeatedly calling the stock overvalued.
In March, he reflected on past predictions that didn’t pan out, suggesting either a misunderstanding on his part or by the market.
Despite Nvidia’s leading role in AI, Damodoran cautioned that achieving profitability might be more complex than believed.
Investors can gain exposure to Nvidia through Vanguard Information Tech ETF (NYSE:VGT) and iShares S&P 500 Growth ETF (NYSE:IVW).
Price Actions: NVDA shares traded higher by 0.02% at $128.46 premarket at the last check on Tuesday.
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