Nvidia ‘Bubble’ Talk Spreads to ESG Investors Who Rode Highs
- ESG fund exposure to Nvidia has dropped since mid-2023
- Concern is that growing retail presence ‘portends bubble’
The proportion of ESG funds holding Nvidia shares dropped to 15% of the total at the end of December from a high of 20% in the second quarter of 2023.
Photographer: Marlena Sloss/BloombergConcerns that Nvidia Corp.’s stratospheric gains might be unsustainable have spread to ESG investment managers who beat the market last year by betting big on the stock.
“I’m optimistic in the long run, but recognize that the valuation isn’t exactly attractive,” said Kristofer Barrett, who oversaw a decision to make Nvidia the biggest holding in Swedbank Robur Technology, transforming it into the top performer in a Bloomberg ranking of ESG funds last year. The Swedbank fund, which is registered as “promoting” environmental, social and governance metrics under European Union rules, returned 53% in 2023.