Close Menu
    Stocks

    Is my portfolio too Nvidia heavy?

    Nvidia is currently about 13% of my total portfolio. It feels a little heavy since a good chunk is based on this one company, albeit a world class one. Should I sell some off?

    Currently, about 70% of my portfolio is VTI and other S&P500 index funds. Thats my core and prefer to keep index funds the foundation of my portfolio so that I don’t have to constantly be studying my portfolio and the different stocks and companies. I like to be a little more passive and hands off on my investments so I’m not constantly worried about what everything is doing.

    Any index mostly investors here can put some insight on if Nvidia is too much in my portfolio?

    Is my portfolio too Nvidia heavy?
    byu/joeroganthumbhead instocks



    Posted by joeroganthumbhead

    27 Comments

    1. Realistic_Agent_9494 on

      Really depends on your goals, age, net worth and ultimately risk tolerance.

      Sorry I know, not a good answer.

    2. Cozyteammate on

      Any stock will become too heavy when

      1. You dont understand it fully.

      2. You can’t handle volatility during drawdown.

    3. The_Mumbowza on

      Whether or not your portfolio is too heavy or too light in Nvidia is up to each individual. If you’re bullish on AI then you should probably keep it. That said, considering it’s over 10% of your portfolio and it’s often times in the most top five trade companies every day, you just need to be ready for a lot of volatility more so than your average index like SWPPX.

      IMO Nvidia isn’t going anywhere and unless something like ENRON happens to it, it will only continue to climb. But that’s not without heavy volatility.

    4. BeautifulAuthor9167 on

      If you can sleep at night, keep it. If not, rebalance back to your VTI core.

    5. Substantial_Ad6190 on

      I’m hovering at around 18% and I’m cool with it.
      Used to be 25 before my other positions rose up.
      I don’t add frequently, so it will shrink overtime in comparison to what I’m adding.

    6. kylescagnetti on

      If your wee wee peep was 13% of your total body mass would you consider it too heavy?

    8. YoungMonty619 on

      Nope. Not if you have conviction + strong enough mind to ignore the noise and hold 5-10 years.

    11. No_Issue2334 on

      Depends. No one can answer this for you.

      Amazon is 23.5% of my portfolio. Google is 18%.

      But I’m comfortable with that. Amazon used to be 31% for me before Google and ASML ran up

    12. fatheadlifter on

      Yeah I agree with others here, I think you’re asking the wrong questions from an investment standpoint.

    15. tarnished_cache on

      NVDA has been about half my portfolio for 10+ years and I plan to keep that way for the next 1-2. To each their own, but don’t feel intimated by dips and market rumours. NVDA has legs and it’s not going anywhere any time soon in my opinion

    18. TootsHib on

      Keep in mind that the S&P 500 is currently 7.83% NVDA

      Did you add that to your “13%”?

    19. b1gb0n312 on

      Nvda is about 6.4% of my portfolio. The next in my top 10 are apple 5.9%, msft 4.4%, amzn 3.2%, GOOGL 2.7%, AVGO 2.3%, GOOG 2.1%, Meta 2%, TSLA 1.7%, brk.b 1.4%. The remainder are in a few thousand other US companies.

    20. nobertan on

      I arbitrarily like to keep my volatile individual stocks below 10%. (If it’s concrete and sustainable performance, let it ride ofc.)

      I buy them initially at 2.5% up to a max 5% of total and then trim down once a year when it’s tax efficient to do so, ie long term gains. (taxable account).

      Use that cash to balance out the rest of the portfolio, if there’s a strong divergence from my preferred distribution.

      I’m also not trying to shoot for the moon, if I were I’d be much more concentrated and less diverse to start with.

    23. DavidVanMtl on

      13% is fine, if your other holdings do not include it.

      For example, some might think to be fully safe by investing in a broad ETF like QQQ (Nasdaq).
      Nvidia weighs 9% inside the ETF…

    24. cat-from-the-future on

      Depends on your goals and risk tolerance. NVDA currently 80% of mine but I’m also over 2x levered.

    25. steady_compounder on

      If 70% of the portfolio is already broad index funds, 13% in Nvidia doesn’t sound insane, but it is big enough that it can noticeably drive your results. I’d frame it less as ‘is Nvidia too good?’ and more as ‘would I still choose this size today if I were building from scratch?’

    26. BikeOk6446 on

      The Shiller PE ratio for NVDA is over 40. If you are comfortable holding stock that is that overvalued, then sure, hang on to it.

    27. spddemonvr4 on

      Yes. Traditionally you should limit single exposure to around 10%… But at the end of the day, the risk you take is up to you

    Leave A Reply
     
    Share via
    Share via