According to an Investing.com report, Morgan Stanley noted that Nvidia has the largest shortfall between its S&P 500 allocation and active fund ownership.
- Morgan Stanley noted that ownership of large-cap tech has fallen to its lowest point in 17 years.
- Analyst Erik Woodring said Nvidia’s gap between its S&P 500 allocation and active fund ownership was 2.57%.
- The firm stated that other tech giants, such as Apple, Microsoft, and Amazon.com, also lag.
Morgan Stanley reportedly highlighted that mega-cap technology stocks are among the most under-owned names among institutional investors, with Nvidia Corp. (NVDA) emerging as the leader in this category.
According to an Investing.com report, reviewing fourth-quarter 13F filings, Morgan Stanley noted that ownership of large-cap tech has fallen to its lowest point in 17 years, with the gap against the S&P 500 benchmark widening to -155 basis points by quarter-end.
Nvidia Tops the Under-Owned List
Morgan Stanley analyst Erik Woodring said Nvidia has the largest shortfall between its S&P 500 allocation and active fund ownership, trailing by 2.57%, according to the report.
Nvidia “remains the most under-owned large-cap tech stock,” said Woodring. Other tech giants like Apple Inc. (AAPL), Microsoft Corp. (MSFT), and Amazon.com Inc. (AMZN) also lag, with gaps of 2.16%, 2.13%, and 1.37%, respectively.
Nvidia’s stock traded over 2% higher in Wednesday’s premarket. On Stocktwits, retail sentiment around the stock changed to ‘bearish’ from ‘extremely bearish’ territory the previous day. Message volume shifted to ‘normal’ from ‘low’ levels in 24 hours.
Woodring highlighted a clear trend of funds favoring AI-related hardware and semiconductor companies over software stocks.
Meta Deepens Nvidia Partnership
On Tuesday, Meta Platforms Inc. (META) announced a multi-year strategic partnership with Nvidia to ramp up its AI infrastructure and enhance performance across its global data centers.
The collaboration will deploy Nvidia’s advanced GPUs, networking solutions, and software tools to optimize AI training and inference workloads.
Big tech companies like Alphabet (GOOG, GOOGL), Microsoft, Meta, and Amazon.com are investing heavily to secure advantages in computing power and AI capabilities, thereby keeping Nvidia in a leading position for AI-related infrastructure.
In early February, Ross Gerber, CEO and co-founder of Gerber Kawasaki Wealth and Investment Management, had indicated that the next three years will see fierce battles in hardware, as companies strive to establish dominant positions in AI technology.
NVDA stock has gained over 32% in the last 12 months.
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