Retail traders are viewing the recent sell-off of Nvidia as a buying opportunity, and have been snapping up shares of the leading AI chip maker during the volatility. Data from JPMorgan shows that this group of traders purchased $1.8 billion worth of Nvidia stock in the past week, as the company led by Jensen Huang experienced a rapid pullback. This nearly accounted for the entire $2.1 billion that retail traders spent on individual securities last week.
The sell-off of Nvidia began last Thursday, after the company temporarily surpassed Microsoft to become the most valuable publicly traded company in the United States. Within just three days, Nvidia’s stock plummeted by 13%. While it has since regained some ground, the stock has only dropped by 2% so far this week. Nvidia produces valuable artificial intelligence graphic processing units (GPUs), which are sold to companies such as Microsoft, Google, Amazon, Oracle, and Meta Platforms to power their data centers and cloud services. Despite the recent dip, Nvidia has more than doubled in value since 2024, with a 150% increase on top of last year’s 239% surge. The valuation of this chip maker has now exceeded $3 trillion, making it such a prominent player that it is now a market bellwether that can influence the entire stock market. JPMorgan estimates that retail investors have seen a 179% increase in trading Nvidia this year, outpacing the stock’s performance so far.
Meanwhile, JPMorgan also noted that other large tech stocks performed poorly among individual investors last week. Net sales for Advanced Micro Devices were $163 million, Microsoft’s net sales were $158 million, and Tesla’s net sales were $122 million.