Nvidia (NVDA) has been named the most underowned large-cap technology stock by Morgan Stanley. According to the report, institutional investors currently hold just 4.2% of Nvidia in their portfolios, while its weight in the S&P 500 is 7.37%, making it underweighted by 2.41%.
Nvidia’s fundamentals remain strong. The company continues to benefit from high demand for computing power, and supply constraints are gradually easing. In 2025, Nvidia’s stock has already increased by 33%, outperforming the S&P 500, which has risen about 10%. However, some analysts still point to concerns over its high megacap valuation.
OpenAI Valuation Reaches $500 Billion Amid Secondary Share Sale Talks
OpenAI, the creator of ChatGPT, is reportedly in discussions to sell $6 billion in employee-owned shares. This move would value the company at an astounding $500 billion, making it the world’s most valuable privately held company.
The secondary share sale is expected to involve investors such as SoftBank and Thrive Capital. OpenAI’s valuation has grown rapidly, from $157 billion in October last year to $300 billion in March 2025, reflecting the soaring interest in AI technologies.
As OpenAI competes with tech giants like Google, the company is navigating several challenges, including a lawsuit from Elon Musk. Its unique hybrid structure—combining nonprofit and for-profit models—has drawn attention, and discussions are ongoing about a potential shift toward a more traditional corporate framework.
Key Takeaways
- Nvidia remains underowned in institutional portfolios despite strong AI-driven growth.
- Investor concerns focus on geopolitical risks and supply chain issues, but fundamentals are strong.
- OpenAI’s valuation has reached $500 billion, highlighting massive investor interest in AI technologies.
- OpenAI’s secondary share sale will involve major investors and could reshape its corporate structure.
Both Nvidia and OpenAI illustrate the continuing boom in AI, with strong growth trajectories and increasing investor attention. Market watchers see these developments as key indicators of AI’s impact on technology investments.
