South Korea’s leading foreign stock has shifted from Tesla to Nvidia.
For four years, South Koreans favored Tesla as their top foreign stock choice, surpassing Amazon in July 2020. However, Nvidia has now surpassed Tesla, with the US-based chip company potentially benefiting from the influence of Tesla CEO Elon Musk on its rapid ascent.
Data from the Korea Securities Depository (KSD) on Thursday, May 30, revealed that South Korean investors collectively own $11.07 billion worth of Nvidia stocks, slightly edging out their $10.67 billion investment in TSLA shares.
Despite this, KSD data shows that Tesla still leads in net purchases, with South Korean investors placing buy orders totaling $1.18 billion in TSLA compared to $516 million in Nvidia over the last five months. Although Tesla reigned supreme among South Korean investors in recent years, a decline in electric vehicle demand has impacted its stock performance.
In contrast, Nvidia, as a player in the semiconductor industry, is witnessing growth opportunities amid the technology sector’s focus on AI development. Currently, Nvidia Corp’s stock is valued at $1,148.25, marking a 20.28% increase over the past five days, with a market capitalization of $2.82 trillion.
Following Elon Musk’s announcement that xAI will assume responsibility for Open AI, Nvidia Corp’s shares experienced a surge. Musk’s xAI secured $6 billion in a series B funding round, intended for product launches, infrastructure enhancement, and future technology research and development.
Anticipated growth is expected for Nvidia as xAI expands its product offerings. Musk previously indicated that xAI will require 100,000 specialized semiconductors for AI Grok operations. Additionally, Musk highlighted the necessity of Nvidia’s flagship H100 graphics processing units for a “gigafactory of compute.”
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