A situation that was driven by panicked Wall Street may have been an undeniable blessing for a host of investors. Indeed, Nvidia (NVDA) plummeted more than 17% to start the week due to the ongoing DeepSeek AI sell-off, and that led retail investors to buy a remarkable $920 million worth of the stock.
The development showed that a plethora of investors bought the dip during the early-week crisis. Specifically, the arrival of an advanced and affordably created artificial intelligence language model from a Chinese startup led many to exit their positions. Ultimately, it cost Nvidia $600 billion in its market cap amid what was a record drop.
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Nvidia DeepSeek Sell-Off Benefitted Retail Investors: Why Buying the Dip Could Pay Off
The final week of January has certainly proved to be a tough one for Nvidia. The AI chipmaker struggled and has yet to regain its footing. Over the last 24 hours, the stock has dropped as much as 3% despite its recovery efforts Wednesday. Moreover, the fall came after the company had finally usurped Apple (AAPL) as the world’s largest by market cap.
Yet, there may well be a silver lining developing for the public. According to a Yahoo Finance report, Nvidia’s falling share price from the DeepSeek sell-off led retail investors to snatch up an incredible $920 million worth of the AI stock. The move saw traders buy the dip in bulk in a remarkable show of belief in the company.
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On Monday, in the midst of the falling value, data shows retail investors bought more than $562 million worth of shares. Moreover, that is the largest single-day inflow into the stock, according to the report. It didn’t end there. A day later, the same investors purchased $360 million. Over the two-day span, the investors in question spent more than $920 million on the stumbling stock
“We think this is probably going to end up a ‘buy the dip’ Nvidia moment,” Tom Lee, head of research at Fundstrat, said Monday. Moreover, Bank of America researchers echoed a similar sentiment. Speaking to clients Wednesday, Vivek Arya said the fall was an “enhanced [buying] opportunity.