Wells Fargo cuts Nvidia position. Here's why

Investing.comJun 27, 2024 12:09 PM

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.

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