Buy or Sell Nvidia? Top-Rated Fund Managers Can’t Agree

Key Takeaways

• With Nvidia rallying 35% this year and hitting a $4.4 trillion market cap, top-rated managers are divided on buying versus selling the stock.
• Among our 15 top-rated stock pickers who hold Nvidia, seven recently added to their positions, including Polen Growth Fund and Neuberger Berman Multi-Cap Opportunities Fund.
• Seven others have recently sold the stock, including GQG Partners US Select Quality Equity Fund and Brown Advisory Sustainable Growth Fund.

Is Nvidia NVDA a buy or a sell? Some of Morningstar’s most highly rated fund managers are split over the question. Some funds—including the $10.4 billion Principal Blue Chip Fund PGBHX and the $250 million Neuberger Berman Multi-Cap Opportunities Fund NMUEX—have piled in further in their most recently reported portfolios, while others, such as the Brown Advisory Sustainable Growth Fund BAFWX, have sold. One of the managers recently bought the stock after sitting out most of its massive artificial-intelligence-driven rally, while another thought that rally had reached “a fever pitch” and decided to sell.

The semiconductor giant has risen 35% so far this year, bringing it to a colossal $4.4 trillion market cap—the highest in the world. The company has been one of the biggest beneficiaries of the wave of investment in AI data centers. With an eye-popping cumulative gain of 1,290% over the past five years through Dec. 9, Nvidia has grown so large that it makes up 7% of the benchmark Morningstar US Large-Mid…