I want to invest in Nvidia! Technically, you already are.

The hot ticket item since the start of 2023 has been Nvidia and AI writ large. We’ve seen tremendous growth in this space from an investment perspective, and tremendous excitement and wariness from a societal perspective. But sticking with the investments, it’s no secret these companies have been highflyers and have produced incredible returns. Take Nvidia; in 2024 alone it’s stock price is up nearly 79%! Any reasonable investor would want to ride that wave and capture those gains. But here’s the thing, you already do own it! And you most likely don’t need more of it. Here’s why.

I already own it. Well, where is it?

Yes, you likely do already own Nvidia, as well as other popular tech companies investing in AI, like Microsoft. These companies are baked into investment products that invest in large cap growth companies. If you buy a mutual fund or an ETF that tracks large cap growth, you are investing in Nvidia. And many of these products are weighted, meaning the better they do, the more of the investment product they take up. Nvidia, for instance, can make up over 8.5% of a product which holds hundreds of other companies!

Well, okay, but I want to buy more of it!

We preach patience and diversification with investments, as well as sticking to your financial plan. The AI sector’s intrigue is only matched by its volatility. Valuations can fluctuate, and when they do, it’s important to rely on your diversified, long-term investment strategy.

In sum, it’s exciting to watch the immense growth of AI and tech companies in such a short time. Investors are likely already reaping the rewards through their diversified investment products, the key being diversification. AI is still a volatile sector and it’s important to consider this when building an investment strategy and financial plan.

If you have any questions don’t hesitate to contact your financial advisor.