In recent times, Nvidia, a global technology company, has been attracting the attention of young investors, despite the concerns raised by DeepSeek and tariffs. The company’s stock value has seen an astonishing increase of over 1,800% since 2020, making it one of the most valuable companies globally. This surge in popularity and value can be attributed, in part, to a wave of interest from young investors.
Surpassing even Tesla, Nvidia has emerged as the most held stock on Robinhood, the popular investment platform. Remarkably, around 75% of funded accounts on Robinhood are held by Gen Z and Millenials. Vlad Tenev, Robinhood CEO, expressed his belief to Bloomberg that investing in advanced tech companies like Nvidia will be increasingly important, given the role of AI.
Gen Zers appear to be heeding this advice. On any given day, Nvidia is a hot topic on the r/wallstreetbets subreddit, which boasts a user base of 18 million. An exclusive community dedicated to investment discussions on Nvidia, the NVDA_Stock community, counts over 88,000 members.
Nvidia: An Economic Powerhouse
The importance of Nvidia in the global market is undeniable. Experts now compare the impact of Nvidia’s earnings reports on market movements to that of U.S. jobs reports. In the last quarter of 2024 alone, Nvidia generated an impressive $39.3 billion. With such strong performance, many industry analysts remain optimistic about Nvidia’s future, with the company receiving a “Buy” recommendation, according to Barron’s.
However, Nvidia didn’t have a smooth start to 2025. With DeepSeek showcasing an ability to match U.S. AI at significantly lower costs, Nvidia saw a $500 billion drop in its value. With tariffs and rising recession fears in the U.S., some investors are questioning whether Nvidia can maintain its growth trajectory, as seen in 2023 and 2024. However, CNBC’s Jim Cramer cautions investors against hastily dropping Nvidia stocks.
The Rise of Young Investors
Notably, Gen Zers are beginning to invest at an earlier age than previous generations. According to Charles Schwab’s Modern Wealth Survey, on average, they’re starting at age 19, compared to age 25 for Millenials and 35 for Baby Boomers. With escalating concerns about financial literacy, it’s crucial for younger generations to comprehend the risks associated with investing.
Sherron Permashwar, a CPA and financial education expert, suggests that for new investors, buying individual stocks like Nvidia can be an excellent learning opportunity. However, she also emphasizes the importance of a diversified portfolio to minimize risk. While Nvidia was the second-best performer in the S&P 500 last year, relying on a single stock’s past performance could be a risky gamble.
This story was originally featured on Fortune.com
