NVIDIA (NASDAQ: NVDA) made headlines again with a major backer exiting its stake. However, as newsworthy as it is, it is ultimately a so-what moment for the stock’s price. Not only were the sales made in the prior month, but the impact on market dynamics is minuscule and offset by numerous factors. Softbank’s remaining position was worth approximately 0.12% of the market cap and 0.13% of the stock float, about one-fifth of the average daily volume, which is insufficient to offset the monumental influx of investor dollars represented by analysts and institutional trends.
Institutional trends remain strong, with the group holding around 65% of the stock, a significant portion considering retail interest. Over the past 12 months, they've been purchasing at roughly $3 for every $1 sold, with activity increasing throughout the year. The pace slowed in October, ahead of the upcoming earnings release, but remains bullish on balance and likely to remain so following the report. Data from Bank of America reveals that NVIDIA remains among the most-owned stocks by fund managers, with more than 75% holding it, and ownership continues to expand, with depth solid.
