Nvidia (NVDA) Stock Nibbling by Institutional Investors Amidst Retail Exodus
Institutional investors are cautiously buying into Nvidia's (NVDA) battered stock, despite a slump in retail purchases. According to Vanda Research, retail investors allocated $34 million in Nvidia on Monday, a significant decline from previous levels.
The recent surge in Nvidia shares, up 5% in February, is attributed to this institutional interest. However, institutional option flows have yet to rebound strongly, indicating a lack of full confidence.
Vanda Research believes that institutional investors are stepping into the void left by retail investors. The launch of DeepSeek's AI model, RI, has sparked concerns about its impact on AI growth. However, analysts believe that DeepSeek's lower costs do not pose a substantial threat.
Analysts cite Nvidia's robust software ecosystem and large development community as key competitive advantages. Bank of America's Vivek Arya reiterates Nvidia as his top pick for 2025, with a price target of $190.
Palantir (PLTR) Attracting Retail Investors Amidst Insider Selling
As retail investors exit Nvidia, they are gravitating towards Palantir (PLTR). Vanda Research reports a record $339 million in retail demand for PLTR in the past week. This phenomenon occurs despite significant insider selling, which typically indicates bearish sentiment.
Insider selling in Palantir remains a concern, but retail demand has sustained the stock's bullish momentum. However, a potential cooling of retail interest and continued insider selling could reverse the trend.