Wells Fargo cuts Nvidia position. Here's why

Investing.comJun 27, 2024 12:09 PM

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Wells Fargo (NYSE:WFC) said Thursday it has made adjustments to its Signature Picks equity portfolio, reducing its overweight position in Nvidia (NASDAQ:NVDA) from 6.8% to 5%.

The bank said the position cut is due to “risk purposes.”

Signature Picks is Wells Fargo’s diverse portfolio of stocks representing the bank’s research department’s top investment ideas.

The move comes after Nvidia shares recovered following a series of consecutive declines that caused the company's valuation to drop from the top spot to third place.

NVDA stock jumped nearly 7% Tuesday, reclaiming the $3 trillion valuation tag and alleviating investor concerns that its critical role in the ongoing AI boom may be fading.

Despite its recent volatile performance, Nvidia remains the best-performing stock of the tech-oriented Nasdaq 100 index, with a year-to-date surge of more than 155%.

The company currently sits on a market capitalization of $3.11 trillion, only behind Apple (NASDAQ:AAPL) at $3.27 trillion and Microsoft (NASDAQ:MSFT) at $3.36 trillion.

Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

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