Nvidia Corp NVDA shares skyrocketed more than 230% in 2023 and haven’t slowed down since the start of 2024. After hitting new all-time highs in early trading Tuesday, Ritholtz Wealth Management’s Josh Brown decided to lock in some profits.
What To Know: Tuesday on CNBC’s “Fast Money Halftime Report,” Brown announced that he trimmed his Nvidia position for just the second time since 2017.
“After doubling last year, more than doubling, this stock went up 40% year-to-date and I looked at that upgrade yesterday and there was absolutely nothing new,” Brown said.
People have become so bullish on Nvidia that they have run out of new good things to say, Brown said. Instead, analysts are raising price targets to keep up with the stock. It’s become almost “breathless,” he added.
Brown, who has owned Nvidia stock for several years, says it continues to outgrow his other positions. “Nothing else is going up that fast,” he said.
Given the outsized gains in Nvidia stock over the last few years and the continued upward momentum to start the year on no apparent news, Brown decided to cut 20% of his Nvidia position.
“I’m not calling the top. I still have most of my position … I just felt like the chart went vertical and people have just like lost their minds,” he said.
“I’m as excited about generative AI as anyone else and I’m bullish. I’m just not that bullish where I think a stock should go up, you know, 20% every month just because the alarm clock went off and the sun came up,” Brown said.
Nvidia closed out 2023 up 239% and is already up another 35% in 2024. The company is scheduled to report fourth-quarter financial results on Feb. 21. Investors will have high expectations going into the print given the stock’s move over the last year and the company’s streak of blowout quarterly results.
Read Next: Nvidia and Cisco Join Forces to Bring AI Technology to More Businesses
NVDA Price Action: Nvidia shares were down 1.62% at $682.16 at the time of writing, according to Benzinga Pro.
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