Retail traders saw Nvidia’s recent stock drop as a chance to buy, investing $1.8 billion in the dominant AI chip maker over the past week. This surge in purchases made up almost all of the $2.1 billion spent on individual securities by retail investors in the same time frame, according to JPMorgan data. Nvidia’s shares tumbled last Thursday, leading to a 13% decrease over three days. However, the stock has since rebounded slightly, now only down 2% for the week. The company produces valuable AI GPUs used by tech giants like Microsoft, Google, Amazon, Oracle, and Meta Platforms for their data centers and cloud services. Despite the recent dip, Nvidia’s stock has more than doubled in 2024, with a 150% increase on top of last year’s 239% surge. With a valuation exceeding $3 trillion, Nvidia has become a significant player influencing the broader stock market. Retail investors have upped their Nvidia trading by 179% this year, surpassing the stock’s overall performance. On the other hand, other large-cap tech stocks like Advanced Micro Devices, Microsoft, and Tesla saw net declines in purchases from individual investors last week, according to JPMorgan.
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https://www.cnbc.com/2024/06/27/retail-traders-were-out-in-force-to-buy-the-dip-in-ai-darling-nvidia-.html
