<p>New York: Chipmaker Nvidia is replacing Tesla as Wall Street's most traded stock, adding to its prominence after becoming the third-most valuable US company and showing more evidence of how central AI-related bets have become to investors.</p>.<p>Nvidia's outsized representation in day-to-day stock trading could leave investors more vulnerable should the chipmaker's revenue growth fail to meet investors' high expectations and puncture a Wall Street rally that has been fueled by euphoria about artificial intelligence.</p>.<p>The Santa Clara, California chipmaker's quarterly report on Wednesday will be one of Wall Street's most watched events of the week. Some strategists believe anything short of a blowout report could reverse a rally that has sent Nvidia's stock soaring 47% in 2024.</p>.<p>About $30 billion worth of Nvidia shares changed hands daily on average over the past 30 sessions, pulling ahead of Elon Musk's electric car maker, which averaged $22 billion per day over the same period.</p>.<p>Tesla since 2020 had dominated daily U.S. stock trading, according to LSEG data, with turnover -- a stock's share price multiplied by the number of shares exchanged -- peaking above $35 billion several times in recent years.</p>.AI chip demand forces Huawei to slow smartphone production.<p>On Friday, combined trading in Nvidia and Super Micro Computer, another company benefiting from the boom in AI, accounted for over 40% of all turnover of the 10 most traded US stocks, including Tesla, Meta Platforms, Apple , Amazon and Microsoft.</p>.<p>"There's an argument here that this is the dawn of a new era of trading, like the dawn of the internet, with Nvidia in the pole position," said Dennis Dick, a trader at Triple D Trading in Ontario, Canada.</p>.<p>But Dick also warned that sky-high turnover in AI-related stocks suggests retail investors and algorithmic traders are driving share prices higher based on momentum rather than fundamentals, such as expectations of future revenue growth.</p>.<p>Super Micro, which sells AI-related server components to Nvidia, has seen its value more than triple to $45 billion so far in 2024. It tumbled 20% from record highs on Friday after Wells Fargo started covering the stock with an equal weight rating, saying its valuation already discounts "solid upside".</p>.<p>Nvidia controls about 80% of the high-end AI chip market, and last week its market capitalization eclipsed, separately, Amazon's and Alphabet's to make it Wall Street's third-most valuable company, behind Microsoft and Apple. Nvidia's stock market value has surged to $1.8 trillion from $540 billion a year ago.</p>.<p>Meanwhile, Tesla's stock has tumbled 20% so far in 2024 as it struggles with tepid demand for its electric cars and growing competition.</p>
<p>New York: Chipmaker Nvidia is replacing Tesla as Wall Street's most traded stock, adding to its prominence after becoming the third-most valuable US company and showing more evidence of how central AI-related bets have become to investors.</p>.<p>Nvidia's outsized representation in day-to-day stock trading could leave investors more vulnerable should the chipmaker's revenue growth fail to meet investors' high expectations and puncture a Wall Street rally that has been fueled by euphoria about artificial intelligence.</p>.<p>The Santa Clara, California chipmaker's quarterly report on Wednesday will be one of Wall Street's most watched events of the week. Some strategists believe anything short of a blowout report could reverse a rally that has sent Nvidia's stock soaring 47% in 2024.</p>.<p>About $30 billion worth of Nvidia shares changed hands daily on average over the past 30 sessions, pulling ahead of Elon Musk's electric car maker, which averaged $22 billion per day over the same period.</p>.<p>Tesla since 2020 had dominated daily U.S. stock trading, according to LSEG data, with turnover -- a stock's share price multiplied by the number of shares exchanged -- peaking above $35 billion several times in recent years.</p>.AI chip demand forces Huawei to slow smartphone production.<p>On Friday, combined trading in Nvidia and Super Micro Computer, another company benefiting from the boom in AI, accounted for over 40% of all turnover of the 10 most traded US stocks, including Tesla, Meta Platforms, Apple , Amazon and Microsoft.</p>.<p>"There's an argument here that this is the dawn of a new era of trading, like the dawn of the internet, with Nvidia in the pole position," said Dennis Dick, a trader at Triple D Trading in Ontario, Canada.</p>.<p>But Dick also warned that sky-high turnover in AI-related stocks suggests retail investors and algorithmic traders are driving share prices higher based on momentum rather than fundamentals, such as expectations of future revenue growth.</p>.<p>Super Micro, which sells AI-related server components to Nvidia, has seen its value more than triple to $45 billion so far in 2024. It tumbled 20% from record highs on Friday after Wells Fargo started covering the stock with an equal weight rating, saying its valuation already discounts "solid upside".</p>.<p>Nvidia controls about 80% of the high-end AI chip market, and last week its market capitalization eclipsed, separately, Amazon's and Alphabet's to make it Wall Street's third-most valuable company, behind Microsoft and Apple. Nvidia's stock market value has surged to $1.8 trillion from $540 billion a year ago.</p>.<p>Meanwhile, Tesla's stock has tumbled 20% so far in 2024 as it struggles with tepid demand for its electric cars and growing competition.</p>