Nvidia Rebounds Amidst Institutional Interest, While Retail Investors Flock to Palantir
Institutional investors have emerged as buyers of Nvidia's (NVDA) battered stock, as evidenced by a recent rebound in its share price. Retail purchases of Nvidia have plummeted this month, according to Vanda Research, indicating a shift in sentiment.
Despite the bullish sentiment from institutional investors, institutional option flows have yet to recover significantly. However, Vanda Research suggests that this could be due to analysts digesting the potential impact of DeepSeek's AI model launch. DeepSeek's ability to train AI models at a lower cost has raised concerns about the demand for Nvidia's chips.
Analysts believe that Nvidia remains the preferred platform for hyperscalers due to its robust software ecosystem and extensive development community. Bank of America's Vivek Arya remains bullish on Nvidia, reiterating it as his top pick for 2025 and setting a price target of $190.
Meanwhile, Palantir (PLTR) has attracted significant retail investor demand, with record purchases of $339 million last week. Despite insider selling, which is typically a bearish indicator, retail demand has propelled Palantir's stock up by 55% year-to-date.
However, Vanda Research warns that the sustainability of Palantir's stock price depends on the continued support of retail investors, as insiders continue to sell their shares.