Chipmaker Nvidia (NVDA.O), opens new tab is replacing Tesla (TSLA.O), opens new tab as Wall Street’s most traded stock by value, adding to its prominence after becoming the third-most valuable U.S. company and showing more evidence of how central AI-related bets have become to investors.
Nvidia’s outsized representation in day-to-day stock trading could leave investors more vulnerable should the chipmaker’s revenue growth fail to meet investors’ high expectations and puncture a Wall Street rally that has been fueled by euphoria about artificial intelligence.
The Santa Clara, California chipmaker’s quarterly report late on Wednesday will be one of Wall Street’s most watched events of the week. Some strategists believe anything short of a blowout report could reverse a rally that has sent Nvidia’s stock soaring 40% in 2024.
Nvidia’s stock dropped about 5% on Tuesday, reflecting investors’ jitters ahead of the report.
About $30 billion worth of Nvidia shares changed hands daily on average over the past 30 sessions, pulling ahead of Elon Musk’s electric car maker, which averaged $22 billion per day over the same period.
Tesla since 2020 had dominated daily U.S. stock trading, according to LSEG data, with turnover — a stock’s share price multiplied by the number of shares exchanged — peaking above $35 billion several times in recent years.
Source : https://www.reuters.com/technology/nvidia-dethrones-tesla-wall-streets-most-traded-stock-2024-02-20