How much NVDA should I sell vs hold? 800 shares making up 50% of my portfolio

I bought NVDA before the massive price surge, so I feel pretty lucky with how things turned out.

Here’s the situation: I own 800 shares worth about $100,000, but that’s 50% of my individual stock portfolio. This is a significant amount for me, especially since I don’t come from wealth.

I’m 35 with a growing family, and this year is unique since I’m taking a lot of time off work for family bonding, potentially dropping me into a lower tax bracket. I plan to confirm this with my CPA.

If I sell some NVDA, I’d use the gains to buy index funds like those tracking the S&P 500. I feel more comfortable with this plan, even if it means possibly missing out on NVDA’s future growth. I also suspect there could be a short-term pullback on NVDA and the broader AI sector.

I want to hold onto some shares for the long term but need help figuring out how much. Any thoughts?

(And yes, I know people will say “buy more,” haha.)

Thanks in advance!

  1. Ask yourself: If you had $100,000 in cash today, would you buy NVDA at its current price? If not, consider selling.
  2. Be mindful of tax implications when selling.
  3. If NVDA skyrockets after you sell, don’t beat yourself up. Timing the market perfectly is impossible. Profiting is never a bad thing.

Personally, I’d sell most of it and keep maybe 5% of your portfolio in NVDA as a long-term play. It’s had a fantastic run, but 50% exposure is a lot.

@Rowan
Yeah, I’d trim down. 50% in one stock is risky, especially with a growing family. Maybe keep 100-200 shares for long-term growth and move the rest into index funds.

Rowan said:
@Rowan
Yeah, I’d trim down. 50% in one stock is risky, especially with a growing family. Maybe keep 100-200 shares for long-term growth and move the rest into index funds.

This makes sense. Diversifying into index funds while keeping a small core NVDA position is smart. Peace of mind is valuable.

@Rowan
Solid advice. Nice to see this level of clarity on here.

I’d sell half. That gives you some profits now while keeping skin in the game.

Robin said:
I’d sell half. That gives you some profits now while keeping skin in the game.

Same here. Selling half is a good balance—you won’t feel bad if it goes up or down after that.

First, consider the tax situation:

  • Are these long-term capital gains (held for over a year)? If so, the tax rate is lower.
  • If you’re in the U.S. and filing jointly, long-term capital gains are taxed at 0% up to $97,700 of taxable income. Make sure to calculate this carefully.

Second, think about what you’d do if you had the $100k in cash today. Would you reinvest it all in NVDA or diversify?

Good luck with your decision and congrats on your growing family!

You mentioned you’d feel more comfortable diversifying. That’s an important part of personal finance. No one knows where NVDA will go next, but it sounds like you already know what’s best for your situation. Just stick to your plan and don’t second-guess yourself.

50% of your portfolio in one stock is a lot of risk. I’d trim it to 5-20%, depending on your comfort level.

Instead of selling, you could rebalance over time by buying other stocks or index funds. Let NVDA become a smaller percentage of your portfolio naturally.

Bring NVDA down to about 10% of your portfolio. Use the gains to diversify, but keep enough to stay invested in its potential growth.

I’d sell at least half, maybe more. 25% of your portfolio in one stock is still a lot, but it’s more manageable than 50%. Great job riding the wave with NVDA, though!

For a retirement portfolio, I try to keep individual stocks at 5% or less. Right now, NVDA is about 2% of mine. I’d trim it down gradually.

If you believe AI might see a pullback, it’s definitely worth selling at least some shares. How much depends on your risk tolerance and conviction in NVDA long-term.

Decide if you’re an investor or a gambler. If you’re an investor, sell most of it and buy index funds. You can still get NVDA exposure through something like QQQ.

I have a personal rule: if I find myself posting about a stock decision, I sell half. In your case, I’d sell half and reinvest in diversified funds.