Mutual Funds Miss Out on AI Gains: Nvidia and Co-Underowned by US Funds
US large-cap mutual funds have been significantly underweight in Nvidia (NVDA) and other AI-related stocks, according to a chart compiled by Goldman Sachs.
The chart, shared by Mike Zaccardi, shows that Nvidia is the most significant underweight among the tracked equities, with its average large-cap mutual fund holding only 2.1% of shares compared to its market value.
This underweight position is a stark contrast to the growing importance of AI technology in the tech industry, where companies like Microsoft (MSFT), AMD (AMD), Seagate Technology (STX), Micron Technology (MU), Meta Platforms (META), Alphabet (GOOGL), and SNDK have been making significant strides.
The data suggests that mutual funds may be missing out on potential gains in the AI sector, which has seen significant growth and adoption in recent years. However, it's worth noting that this is just one chart compiled by Goldman Sachs and may not reflect the views of all investors or financial institutions.