Individual Investors Drive Historic Nvidia Volume Despite Stock Dip

Individual investors executed a historic volume of trades in Nvidia shares on Thursday, according to data from research firm VandaTrack. The surge in activity followed the company's latest earnings report, which surpassed analyst forecasts.

Vanda analyst Viraj Patel noted that in the first 80 minutes of trading, net buying by retail traders reached its highest level for any single session since the firm began tracking the data in 2012. Patel emphasized that the selling pressure that led to the stock falling more than 4% by midday did not originate with these smaller investors. 'Flows have been two-way,' Patel wrote, describing the total retail turnover at the session's open as 'pretty epic.'

The earnings report showed Nvidia's revenue grew 73% year-over-year, powered by a 75% surge in its core data center business. Despite the strong results and optimistic guidance, the stock experienced volatile trading.

Patel observed that heightened retail activity appeared to spill over into related securities, including Broadcom and semiconductor ETFs. He suggested that if the pace continues, it could mark one of the most significant days for retail stock buying in recent months, a signal watched for broader market sentiment.

Leading up to the report, retail inflows had been comparatively muted, averaging about half the level seen before the previous quarter's release. Nvidia has remained a favorite among individual investors since 2023. Even with Thursday's decline, the consensus analyst price target implies a potential 35% gain over the coming year.

Source: CNBC