Nvidia Is 2.57% Under-Owned, Signs Multi-Year AI Deal with Meta
A Morgan Stanley note found Nvidia has the largest under-ownership gap among megacap tech stocks at −2.57% relative to its S&P 500 weighting. Nvidia also signed a multi-year AI infrastructure deal with Meta to deploy Grace CPUs, GB300 systems and Spectrum-X networking across Meta’s data centers.
1. Morgan Stanley Identifies Under-Ownership
Morgan Stanley’s quarterly 13F review shows Nvidia’s active institutional holdings trail its S&P 500 weighting by 2.57 percentage points, making it the most under-owned megacap tech stock. The gap has widened modestly since last quarter, reflecting investor preference for AI hardware “picks and shovels” over major AI leaders.
2. Institutional Bias Toward AI 'Picks and Shovels'
Data reveals strong positioning in semiconductor equipment names like SNDK, KLAC and WDC, while holdings in software-oriented tech remain low. This rotation suggests institutions favor capital-intensive AI hardware and networking firms over platform and application vendors.
3. Nvidia-Meta Multi-Year AI Infrastructure Partnership
Nvidia will deliver Grace CPUs, Vera CPUs when available, GB300 systems and Spectrum-X Ethernet to power Meta’s global data center AI workloads. The agreement includes Confidential Computing for enhanced privacy in services like WhatsApp and underpins Meta’s long-term AI research and personalization initiatives.