Institutional investors dumped NVIDIA stock as it hit record high in Q2 2024

Institutional investors reduced their exposure to NVIDIA Corp. throughout the second quarter of 2024 even as the artificial intelligence chipmaker's stock surged to a record high.

During the second quarter, institutional investors sold a net 185.9 million shares of NVIDIA, a net reduction of nearly 1.2%, according to an S&P Global Market Intelligence analysis of the latest filings with the US SEC.

NVIDIA stock closed at an all-time high of $135.58 per share June 18, a more than eightfold increase from the end of 2022, when the stock closed at $14.61 per share. NVIDIA stock climbed nearly 37% through the second quarter of this year. Its growth has moderated since then, adding 2.4% between the end of June and market close Aug. 26.

FMR LLC, better known as Fidelity Investments, was the biggest seller of NVIDIA stock by the end of the second quarter, selling a net 107.7 million shares, reducing its exposure to the tech stock by 9.9%.

The investment management company GQG Partners LLC sold off the second-highest number of shares, selling a net 58 million shares in the second quarter, a 43.4% reduction.

Meanwhile, State Street Global Advisors Inc. increased its exposure to NVIDIA by more than any other institutional investor, buying a net 76.6 million shares.

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While institutional investors sold off more net shares of NVIDIA than the other mega-cap tech stocks known as the Magnificent Seven, they also reduced their exposure to Meta Platforms Inc. by 3.9 million net shares, or more than 0.2%, and Alphabet Inc. by 11.7 million net shares, or less than 0.2%.

Overall, institutional investors increased their exposure to the Magnificent Seven stocks by a net 55.4 million shares in the second quarter, buying, on net, 128.1 million shares of Amazon.com Inc., 57.0 million shares of Apple Inc., 49.3 million shares of Tesla Inc., and 22.6 million shares of Microsoft Corp.

While there was some moderation within the mega-cap tech stocks, they continued to outperform much of the broader S&P 500.

The S&P 500 climbed 18.1% from the end of 2023 through Aug. 23 or 13.2% if the Magnificent Seven were removed from the index.