Nvidia stock is creating wealth like never seen in the S&P 500. And some lucky investors are perfectly positioned to profit.
Ten investors, including ETF and mutual fund giants Vanguard, BlackRock and Fidelity, scored roughly a quarter of a trillion dollars on their holdings of the AI giant — just this year so far, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. That's as shares of Nvidia shot up more than 15% Thursday following the company's much-better-than-expected fourth-quarter results.
Nvidia's ride is breathtaking. It's surged 59% this year — adding nearly $710 billion in value. That makes Nvidia the third-most valuable S&P 500 company at $1.9 trillion. Nvidia's value passed up Amazon.com, Alphabet and Meta Platforms. It's bearing down on No. 2, Apple, valued at $2.99 trillion.
"Wide-moat Nvidia reported another quarter of outstanding revenue and earnings while providing investors with a forecast for the April quarter that was well ahead of our expectations," said Morningstar's Brian Colello.
Who's Making Money On Nvidia?
Nvidia is one of those huge gainers that's benefiting investors in funds the most. Institutions, like ETF providers, own a majority (67.7%) of the outstanding shares.
And Vanguard is the biggest Nvidia investor of them all. The ETF giant owns 204.5 million shares or 8.3% of the shares outstanding. That means Vanguard alone is up more than $59 billion on its position this year. And Vanguard investors are winning, too. The Vanguard Total Stock Market ETF is the ETF that owns more Nvidia stock than any other (73.7 million shares), says ETF.com.
Not far behind with a position of 25.4 million shares is the iShares Core S&P 500 ETF. And that's reflective of iShares parent BlackRock owning 7.3% of the company. The value of BlackRock's position gained $125 billion just this year.
What About Founder Jen-Hsun Huang?
Jen-Hsun doesn't own as much of Nvidia as some of the other Magnificent Seven stocks' founders do. But he owns enough to profit handsomely.
He still retains a 3.5% stake in Nvidia, making him the largest individual owner of the stock. The value of his stake shot up more than $25 billion this year.
But while that's a huge win, individuals only own 4% of Nvidia. That means as long as you're invested in the S&P 500, and most investors are, you're making money on the Nvidia miracle, too.
Biggest Winners This Year On Nvidia
| Holder | % of shares owned | YTD gain ($ billions) |
|---|---|---|
| Vanguard Group | 8.3% | $59.3 |
| BlackRock | 7.3 | 52.1 |
| Fidelity | 4.9 | 35.1 |
| State Street Global Advisors | 3.7 | 26.6 |
| Huang, Jen-Hsun (Co-Founder, CEO) | 3.5 | 25.1 |
| T. Rowe Price Group | 2.1 | 15.2 |
| Geode Capital | 2.0 | 14.5 |
| Norges Bank Investment | 1.2 | 8.6 |
| JP Morgan Asset | 1.1 | 7.8 |
| Northern Trust Global Investments | 1.0 | 7.3 |
