Nvidia Stock Tanks, but Retail Investors Buy the Dip
Nvidia (NVDA) stock plummeted over 17% on Monday, wiping out nearly $600 billion from its market cap. The decline was fueled by concerns over the emergence of a new artificial intelligence model from Chinese startup DeepSeek.
However, retail investors seized the opportunity to buy the dip. Data from VandaTrack reveals that they purchased over $562 million worth of Nvidia shares on Monday, the largest single-day inflow into the stock. On Tuesday, as the stock rebounded, retail investors again flocked in, buying nearly $360 million worth of shares.
Wall Street strategists largely shared the bullish sentiment. Tom Lee of Fundstrat said, "We believe this will likely turn into a 'buy the dip' moment for Nvidia." Vivek Arya of Bank of America echoed this view, stating that the recent sell-off presented an "enhanced buying opportunity."
DeepSeek's AI model is reportedly cheaper and requires less data, raising concerns about its potential impact on Nvidia's AI chip sales. However, analysts like Bernstein's Stacy Rasgon dismissed these concerns as "overblown" and emphasized that the new developments do not herald "doomsday for AI infrastructure."