Retail Investors Pour $900M Into Nvidia Amid Stock Crash

Retail Investors Pour $900M Into Nvidia Amid Stock Crash – What’s Next?

Nvidia ( NVDA) stock plunged the previous day, falling more than 17% and shedding more than 600 billion dollars off its market capitalization as investors pondered the increasing popularity of a cost-effective artificial intelligence technology from the Chinese company DeepSeek.

Retail investors swung for the dip. The data from VandaTrack shows that retail investors bought $562 million worth of the stock on Monday, the most significant single-day inflow into the stock according to VandaTrack’s database.

In the Tuesday session, as the stock increased and gained 9 per cent, the stock saw again a vast swath of retail purchases that amounted to around $360 million. Over two days of tense market activity, retail investors have deposited nearly $920m into shares of Nvidia.

Wall Street strategists largely agreed with retail investors’ optimistic outlook on the term.
“We think this is probably going to end up a ‘buy the dip’ Nvidia moment,” Fundstrat director for Research Tom Lee said in an email to customers at the end of Monday night.

Bank of America research analyst Vivek Arya expressed a similar sentiment in a note addressed to customers on Wednesday, stating that the recent decline of Nvidia, Broadcom ( AVGO), and Marvell ( MRVL) offered the potential for an “enhanced [buying] opportunity.”

The group behind DeepSeek, an Artificial Intelligence model maker, claims that its latest AI model is based on cheaper chips and uses less data. Investors became concerned that this could affect the future AI processor sales of companies like Nvidia and also called into question the power of US hyperscalers on the market.

This could also contest a pattern in the market bull for Nvidia and the other Big Tech companies, seeing their earnings forecasts revised upwards.
Bernstein’s Stacy Rasgon told Yahoo Finance’s Seana Smith that the DeepSeek-driven sell-off was “overblown.” Rasgon said the latest developments don’t indicate “doomsday for AI infrastructure.”