Earlier today, Bank of America (BofA) provided an industry update noting that Nvidia (NVDA) remains the top semiconductor stock among U.S. fund managers. In fact, Nvidia ownership rose to 72% at the end of December 2024, which was up from 70% in September, while Broadcom (AVGO) ownership followed up at 54.6%. At the same time, Applied Materials (AMAT) and Advanced Micro Devices (AMD) came in at 35.7%, Qualcomm (QCOM) at 30.5%, and Texas Instruments (TXN) at 30%.
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Despite its popularity, Nvidia’s portfolio weighting remains relatively modest at 1.01x, up slightly from 0.99x in September but below 1.03x a year ago. This portfolio weighting refers to how much Nvidia stock makes up of a fund manager’s total portfolio relative to a benchmark, usually the S&P 500 (SPX). In this case, the “1.01x” means that Nvidia’s allocation in portfolios is 1.01 times the benchmark allocation, or 1% higher than what the benchmark holds.
In addition, ownership in Broadcom and ON Semiconductor (ON) rose by 2.4% and 0.4%, respectively, while holdings in Applied Materials, Lam Research (LRCX), and Intel (INTC) dropped significantly. Interestingly, Intel saw ownership fall to 8.4% – well below its $50 billion+ market-cap peers, which range from 15% to 70% ownership. Overall, semiconductor stocks held by fund managers declined from 24.7% in September to 23% in December despite continued optimism in major players like Nvidia.
Is NVDA a Good Stock to Buy?
Turning to Analysts, Wall Street has a Strong Buy consensus rating on NVDA stock based on 37 Buys and three Holds assigned in the past three months. After a 201% rally in its share price over the past year, the average NVDA price target of $177.08 per share implies an upside potential of 22.7% from current levels.
