Do I Have Too Much Invested in NVDA?

General
1

Hey everyone,

My account is sitting at around $127k, spread across 12 different stocks. I’ve got about $5k in stocks like MU, INTC, Disney, HD, and Netflix, and up to $10k in bigger names like META, MSFT, AAPL, TSLA, and other large-cap tech. But NVDA has grown to $40k and just keeps going up. I’m a bit nervous that I’m too heavily invested in it, even though it’s been a big winner.

Would you hold or trim some NVDA here?

2

Your portfolio is quite concentrated, especially in tech. It’s risky, but some top investors have made their fortunes by focusing on a few high-conviction bets. If it were me, I’d take some gains from NVDA and diversify into an ETF like VOO or VTI, maybe add some international exposure with VXUS.

3

@Drue
I’m 33 and work as a school counselor. I have a separate retirement account with the state, and this is my personal account that I’ve managed since college. I was considering putting $10k into VTI or SPY. Maybe I should trim $15k from NVDA and use it for that.

4

@Sidney
If you go with an index fund like the S&P 500, you’ll still get some exposure to NVDA, just in a smaller portion and alongside other companies.

5

@Sidney
SPY still leans tech-heavy, so VTI might balance your portfolio better. International exposure wouldn’t hurt, either.

6

@Sidney
Are you maxing out your 403(b)? NVDA has had a huge run-up, but some concerning signs like rising accounts receivables and inventory. Look into NVDA’s partnerships like CoreWeave and its connection with SMCI. Just something to consider before deciding.

7

There’s no such thing as too much Nvidia!

8

You’ll learn about risk tolerance through experience. A diversified portfolio can save you pain during downturns. I keep 5% of my portfolio in individual stocks and the rest in index funds, so I don’t get burned too badly if one company drops.

9

@Wade
GOOGL is a good pick!

10

This is where rebalancing helps. Selling off some of your winners ensures you’re not overly reliant on one stock. NVDA is a unique company, though.

11

Max said:
This is where rebalancing helps. Selling off some of your winners ensures you’re not overly reliant on one stock. NVDA is a unique company, though.

You might want to rebalance. It can go either way for a portfolio, though.

12

@Hart
True, it depends on your goals.

13

You took a risk, so take a reward. Otherwise, your risk/reward balance is off.

14

I bought more NVDA… I might be crazy, though.

15

If you don’t sell when it’s up, you may end up selling when it’s down. Personally, I invest in indexes to avoid the need to time the market.

16

Lei said:
If you don’t sell when it’s up, you may end up selling when it’s down. Personally, I invest in indexes to avoid the need to time the market.

Setting up stop losses can help with managing those big swings.

17

Lei said:
If you don’t sell when it’s up, you may end up selling when it’s down. Personally, I invest in indexes to avoid the need to time the market.

Or never sell? If you bought AAPL in 1992, the right time to sell was… never.

18

Lei said:
If you don’t sell when it’s up, you may end up selling when it’s down. Personally, I invest in indexes to avoid the need to time the market.

Honestly, I’d sell down to just my initial investment and let the rest ride.

19

Lei said:
If you don’t sell when it’s up, you may end up selling when it’s down. Personally, I invest in indexes to avoid the need to time the market.

Good point.

20

It depends on your perspective. NVDA’s future depends on AI growth, but market timing is tough. Diversifying may be a safer bet, but nobody can be 100% sure. Congrats on the gains!