Nvidia overtakes Apple and Microsoft in record investing period on Sharesies

Nvidia boss Jen Hsun Huang shows off one of its chips being put to work powering artificial intelligence. Photo / Getty Images

Investors are piling into Nvidia’s grip on global markets, with its popularity on local trading platform Sharesies overtaking fellow technology giants Apple and Microsoft.

The artificial intelligence-linked company with a market capitalisation of US$3 trillion ($4.8t), was ranked the third-most popular stock on the platform used by more than 650,000 New Zealand investors, and the fifth-most-bought overall in the three months to the end of June.

It was the second-most popular United States stock on rival platform Stake, which had 60,000 users.

Investors on Sharesies held $93.3 million worth of Nvidia stock at the end of June, a 35.6% increase in holdings from the month before.

Air New Zealand and Tesla were the most-owned companies on Sharesies, with Nvidia third, followed by Apple and Auckland International Airport.

Nvidia and its 161% share price increase in the year to date was not the only notable rise. Dubbed “meme stocks”, GameStop and AMC Entertainment were the biggest movers on Sharesies in the quarter, jumping by 10 and nine spots respectively in users’ popularity ranks – although that was likely due to their value increasing and therefore making up a larger portion of portfolios.

“Despite this latest resurgence driving some new investors to GameStop and AMC, over 73% of investors have been holding these stocks for over two years,” Sharesies’ statement releasing the data read.

Companies that dropped in the ranks were Tourism Holdings, Amazon and Ryman Healthcare.

The entire quarter spurred a surge in trading volumes, with Sharesies seeing $1.28 billion traded in the three-month period – a new record.

That included a record single trading day with $36.3m passing through the platform on June 21.

The data could suggest renewed confidence among investors, with more buying than selling on average across the quarter and customer deposits reaching a level not seen since 2021.

Withdrawals in June were the lowest they had been all year.

Data from competing trading platform Stake showed 76% of 1000 investors surveyed in May had invested in the previous six months, with 67% not selling any of their holdings over that time.

That included 78% of 18- to 24-year-olds.

However, financial strain from the cost of groceries, utilities and slow wage growth had led 36% to decrease the amount of money they were investing or saving.

“In an economy where costs continue to outpace long term wage growth, New Zealanders are looking for more accessible and reliable ways to reach financial security,” Stake chief executive Jon Howie said in a written statement with the data.

“Rather than simply waiting for things to get better, they are upskilling, delaying gratification and engaging with financial markets to supplement their hard work.”

The findings showed they were funding their investments by reducing their spending on takeaways, dining out, clothing and other entertainment.

About half of the investors surveyed by Stake said they were investing with the aim of retiring and living off their investments, or to boost their income.