$7 Trillion In Cash on Sidelines as Investors Await Nvidia Earnings

With around $7 trillion sitting in cash funds, institutional investors are eyeing Nvidia’s earnings report for a possible trigger to re-enter equities, Bloomberg News' Christian Dass reported.

Positioning in U.S. tech stocks remains light, with hedge funds and mutual funds still underweight. Volatility control and trend-following funds also have room to add risk, according to BBVA strategist Michalis Onisiforou.

This cautious positioning sets the stage for a potential rally if Nvidia’s results show continued strength in AI demand.

Nvidia shares have rebounded 40% in the last seven weeks but remain 14% below their January record.

Trading at a price-to-earnings ratio of 28, the stock sits below its five-year average of 40. However, some analysts warn that recent gains have pushed the stock near overbought levels, making its upcoming report a high-stakes event.