Indians scurrying to hoard Nvidia shares as everyone buying shovel-makers in AI gold rush
Nvidia in recent days has made the Wall Street stock among the most popular bets for Indians who invest in US stocks. In volume terms, it is the second most popular stock on Vested Finance since the last 6 months with trading volumes of more than $25 million.
Volumes have doubled month-on-month and last week it was crowned as the No. 1 trending stock by number of users and volumes on Vested Finance. The average trading volume per user is almost 5x in February 2024 compared to February 2023, said Viram Shah, CEO, Vested Finance.
Monthly trading volume on Vested is 2x of what it was in 2021 but that is largely due to more participants from India in the US markets, he said.
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Last week, Nvidia's market capitalisation crossed the $2 trillion milestone for a brief period and is now valued more than giants like Amazon and Alphabet. On Wall Street, it is the third most valued stock after Apple ($2.8 trillion) and Microsoft (3 trillion).
The sharp rally in Nvidia follows the popularity of the famous business principle of selling picks and shovels in a gold rush. Riding on a boom in generative artificial intelligence worldwide, Nvidia is selling the shovel equivalent of chips in the AI gold rush. Nvidia's chips are used by almost all generative AI players from ChatGPT-maker OpenAI to Google.
As a result, Nvidia shares have surged nearly 60% this year, after more than tripling in value in 2023.
Despite the share surge,
