Institutional Investors Fuel Nvidia's Recovery Amidst Retail Dip
Key Points:
* Institutional investors appear to be accumulating Nvidia (NVDA) shares despite a decline in retail purchases.
* Nvidia has rebounded 5% in February, outperforming the S&P 500's modest decline.
* Vanda Research suggests institutional investors are contributing to the recovery, but option flows need to improve for greater confidence.
DeepSeek's Impact on AI Growth
* DeepSeek's AI model, RI, has raised concerns about overspending on AI infrastructure, including Nvidia chips.
* However, analysts have defended Nvidia, citing its platform leadership and robust ecosystem.
Bank of America Remains Bullish
* Bank of America reiterated Nvidia as its top pick for 2025, with a price target of $190, indicating a 45% upside.
* Analysts expect Nvidia to reassure investors on its execution and growth potential in its upcoming earnings call.
Retail Investors Shift to Palantir
* Retail investors are reportedly shifting to Palantir (PLTR) amidst their exit from Nvidia.
* Palantir has attracted $339 million in retail demand in the trailing week, despite insider selling.
* Vanda Research cautions that a decrease in retail demand could impact Palantir's stock performance.