Michael Burry warns of ‘suspicious revenue recognition’ after Nvidia earnings
Investing.com -- Nvidia continues to be the most under-owned mega-cap technology stock in the United States, according to Morgan Stanley, which said the stock remains at the bottom of institutional portfolios despite its rapid growth and dominant position in artificial intelligence hardware.
Morgan Stanley wrote that “NVDA remains the most under-owned large-cap tech stock,” ranking below other major under-owned names including Apple, Microsoft and Amazon.
Analyst Erik Woodring told investors in a note that mega-cap technology stocks are “the most under-owned in 16+ years,” with the gap between active institutional ownership and S&P 500 weightings widening to “-148bps exiting 3Q25 vs. -140bps exiting 2Q25.”
By contrast, the rest of large-cap tech is “slightly over-owned at +10bps.”
Citing third-quarter 13F filings, Morgan Stanley said Nvidia’s underweight position stands at “-2.61%,” deeper than Apple’s “-2.19%,” Microsoft’s “-1.66%” and Amazon’s “-1.44%.”
Alphabet and Meta are also said to be under-owned, contributing to what the bank described as an unusually broad pullback among the largest U.S. technology companies.
Meanwhile, the most over-owned stocks include Intuit, which Morgan Stanley said is “the most over-owned” at “+0.53%,” along with Salesforce at “+0.49%” and Adobe at “+0.19%.”
Morgan Stanley highlighted that under-ownership has been building steadily, noting that “mega-cap Tech stocks are more under-owned vs. the S&P 500 exiting 3Q25 than at any point in the last 16+ years.”
Although the underweight gap widened only slightly during the quarter, the firm said the trend underscores a persistent reluctance among active managers to increase exposure to the sector despite its earnings momentum.
“The spread … was -148bps exiting 3Q25,” Morgan Stanley wrote, adding that this compares with a +10bps spread for the remaining large-cap tech stocks it tracks.