In two days, retail investors bought $900 million, bottom-fishing NVIDIA!

The decline in technology stocks triggered by DeepSeek is seen by retail investors as a good opportunity to buy the dip.

According to statistics from data provider Vandatrack, retail investors' net purchases of NVIDIA stock reached an astonishing $900 million in the first two days of this week. Among them, the net purchase on Monday was as high as $562 million, setting a historical record, while Tuesday's net purchase was $360 million.

Steve Sosnick, chief strategist at Interactive Brokers, stated that the ratio of buy orders to sell orders for NVIDIA on the platform on Monday was "stunning," saying, "I have never seen such a large trading imbalance."

AI Boom Continues, Retail Investors Optimistic About Long-Term Prospects

Despite China's DeepSeek claiming to have developed an AI model comparable to leading U.S. company OpenAI at a lower cost, raising concerns about the demand for high-end chips, retail investors seem undeterred.

On social platforms like Reddit, many retail investors view the drop in NVIDIA's stock price as a "buying opportunity brought about by the Jevons Paradox." One investor stated, "AI has not slowed down; it is expanding. NVIDIA remains a pillar of the industry, and this drop is a buying opportunity for long-term investors."

Major Brokerages Observe Active Trading in AI-Related Stocks

Charles Schwab, the largest retail brokerage in the U.S., reported an increase in buying activity for AI-related stocks, including NVIDIA. Steve Quirk, chief brokerage officer at online trading platform Robinhood, also noted, "We see customers buying NVIDIA stock... they tend to seize the opportunity to buy their favorite stocks."

Robinhood also stated that on Sunday evening, as the sell-off of AI stocks began to intensify, the company experienced the second-highest overnight trading volume, only behind the night of the U.S. presidential election.

Comparison: Institutional Investors Sell Off

In contrast to the enthusiasm of retail investors, hedge funds that previously held large amounts of NVIDIA stock became the biggest sellers on Monday. Charlie McElligott, a derivatives strategist at Nomura Securities, estimated that trading volume for NVIDIA on Monday accounted for about 10% of the nominal value of U.S. cash stock trading.

This contrast between institutional sell-offs and retail buying highlights the divergence in outlooks among different types of investors regarding NVIDIA and the AI industry's prospects