Following the sudden resignation of former CEO Jensen Huang, Nvidia stock experienced a sharp decline that prompted U.S. retail investors to engage in a massive buying spree.
According to Reuters, the Wall Street Journal, and other financial outlets on the 12th (local time), heavy buy orders flooded in immediately after the New York Stock Exchange opened as Nvidia’s share price plummeted by over 14%.
Record-Breaking Dip Buying by Retail Investors
Market data provider Vanda Research reported that retail investors net-bought $111 million (approx. 150 billion KRW) worth of Nvidia shares during the first 30 minutes of trading. This marks the largest 30-minute retail net-buy volume in Nvidia history right after the market opened.
Buying pressure was also evident at U.S. online brokerage Fidelity. By noon that day, buy orders for Nvidia stock reached 394,818, which was about five times the 80,088 sell orders.
Nvidia shares opened at $151, down 13.08% from the previous day. Although intraday losses briefly exceeded 14%, low-priced buying sentiment helped narrow the decline. The stock ultimately closed down 4.34% at $166.19.
Uncertainty Surrounding Jensen Huang’s Resignation
The core catalyst behind the stock plunge was the abrupt departure of Jensen Huang. As the co-founder who led Nvidia for 33 years stepped down amid controversy surrounding his personal life, management uncertainty heightened significantly.
Over the past five weeks, Nvidia’s share price has dropped by roughly one-third, wiping out over $1 trillion in market capitalization. Approximately $550 billion in market value disappeared during this week alone.
Market Outlook and Divided Sentiments
Despite the turmoil, some retail investors viewed the sharp correction as an attractive entry point, driven by enduring confidence in Nvidia’s dominant market position in artificial intelligence (AI) semiconductors and its long-term growth trajectory.
Nationwide Financial Chief Market Strategist Mark Hackett noted that a repeated pattern of successful buy-the-dip strategies is further reinforcing this investor behavior.
Some market participants bet on a rebound using leveraged exchange-traded funds (ETFs). Vanda Research data showed that between the 9th and 11th, a total of $42.5 million flowed into six leveraged ETFs tracking double the daily performance of Nvidia stock, whereas inverse funds targeting stock declines saw zero net inflows.
Nevertheless, views on Nvidia’s stock outlook remain deeply divided. On Reddit’s stock investment board, roughly 60% of comments regarding Nvidia carried a negative tone.
Wall Street has also adopted a cautious stance. Baird Equity Research downgraded its investment rating on Nvidia to ‘Neutral’ and slashed its price target by 60% to $200.
Concerns are also growing regarding a potential deceleration in AI data center investments. Analysts warn that compounding semiconductor supply issues and possible software demand slowdowns have increased uncertainty for next year’s data center-related earnings.
Investors are now closely watching Nvidia’s upcoming quarterly earnings report and executive guidance scheduled for next week, which will determine whether the company can maintain its AI semiconductor growth momentum in the absence of Jensen Huang.
