Morgan Stanley analysts suggest that Nvidia Stock (NVDA) is backed by investors despite being a top performer at Megacap. After a recent surge in the past two years, NVDA stocks are not the biggest investment choice for Megacap stock investors, despite being the most valuable company in the world. “NVDA is currently the lowest large cap technology stock,” wrote Morgan Stanley analyst Eric Woodling in a memo.
According to Woodring, Nvidia’s market value accounts for 7.37% of the index, but the average active institutional portfolio share is 4.2%, with an adjusted scale of 2.41% points. This gap is the biggest of the team tracks of 15 leading tech companies, Morgan Stanley, despite being the top return for investors since 2024. Beyond that, NVDA stocks are one of the best performance names, with nearly 1,300% increase over the past five years thanks to the AI boom.
Woodring’s analysis also points out that, by comparison, Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN), are not owned, but not as much as Nvidia. Microsoft fell by 2.39%, Apple fell by 1.66%, and Amazon fell by 1.40%. In contrast, the most over-over tech stocks include +0.83% Intuit (INTU), +0.32% Oracle (ORCL), and +0.25% Dell (Dell).
Recently, NVIDIA (NVDA) and Advanced Micro Devices (AMD) have agreed to pay the US government 15% of its revenue from selling AI chips in China. The transaction secured export licenses for both companies to maintain their existing workflows. As a result, investors flocked to NVDA, with stocks increasing by 1.9% over the past month. Despite not being the best earner for investors, Nvidia is moving in a positive direction. “The key indicators for calculating demand remain very strong, but there are no signs of slowing down,” a company analyst wrote. “As supply chain constraints make rack-scale solutions easier and the US government is pushing for China’s export licence approval, NVIDIA continues to see it as the best asset in the current era of AI dominance.”
