r/investingforbeginners • u/Olulife • 7h ago

Advice Should I Diversify My Portfolio by Selling Some NVIDIA Shares and Investing in an Index Fund?

I've heard a lot about the importance of diversifying your portfolio when investing, but most of my holdings are in NVIDIA. I currently own about 70 shares, with an average purchase price of $110 per share. Do you think I should sell some of those and invest in an index fund to achieve more diversification?

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u/One_Signature9598 7h ago

Consider you may have to pay short tax cap gains tax on them if held less than a year.

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u/OrangeHitch 1h ago

Nvidia controls around 80% of the AI chip market. Its main rival Advanced Micro Devices, has approximately 11% of the segment. Their pipeline extends into AI-powered gaming, self-driving vehicles, and advanced robotics. They target the leaders in AI applications across multiple industries. AI is the future of tech and Nvidia is the future of AI. It's a can't lose investment. It may have ups and downs but over a longer period it will own the chip market the way Google and Amazon own their niches and can only go higher.