TECH - Nvidia 'Valuation Isn't Exactly Attractive' Say ESG Fund Managers Despite Big Bets Last Year: '...Portends A Bubble Potentially' | Benzinga
The surging stock of NVIDIA Corp (NASDAQ:NVDA) has sparked concerns about a potential bubble among ESG fund managers. The managers, who reaped significant gains from the stock, are now wary of its sustainability.
What Happened: The proportion of ESG funds holding Nvidia shares dropped to 15% at the end of December from a high of 20% in the second quarter of 2023, reported Bloomberg. This decline in exposure has raised concerns among ESG fund managers, who had previously outperformed the market by investing heavily in Nvidia.
One such manager is Kristofer Barrett, who made Nvidia the largest holding in the Swedbank Robur Technology fund, leading it to become the top-performing ESG fund in 2023. Despite his long-term optimism, Barrett acknowledges that Nvidia’s valuation is a concern.
"I'm optimistic in the long run, but recognize that the valuation isn't exactly attractive," said Barrett.
“There's a realization that this has become a retail stock… And that portends a bubble, potentially.”
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