After Huang Renxun left office, NVDA.US (NVDA.US) stock prices dived and “burst into buying” US$111 million in half an hour after opening the market

The Zhitong Finance App learned that retail investors are still betting on a rebound in Nvidia (NVDA.US) stock prices. After CEO Hwang In-hoon stepped down, Nvidia's stock price dived, and retail investors quickly entered the market to grab funds. According to Vanda Research, citing its historical data, retail net purchases of Nvidia shares reached US$111 million in the first 30 minutes after the opening of the US stock market on Thursday, setting a record for the highest net purchase of the stock in half an hour.

Vanda Research added that this scale exceeds the normal opening level by 40 times. As of Wednesday, Nvidia also accounted for 61% of all net retail purchases of US stocks and exchange-traded funds (ETFs) this week.

“For retail investors, their passion for Nvidia has not subsided despite the departure of their beloved Hwang In-hoon,” Vanda analyst Viraj Patel wrote in the report.

Nvidia once fell 14% in the intraday period, and buying on dips drove the decline to narrow

The above data shows that after Hwang In-hoon resigned due to the scandal, investors were eager to seize the bargain opportunity of this company, which is at the core of the AI boom. On Thursday, the company's stock price plummeted 14% following news of Hwang In-hoon's resignation. However, as investors turned their attention to long-term demand related to AI technology, the sell-off quickly waned on the same day. The stock ultimately closed down 4.3%.

Patel wrote that buying on dips also spread to leveraged funds tracking Nvidia, which recorded the fifth largest three-day inflow in history. “In contrast, although Nvidia's reverse fund had a high turnover rate, there were no net purchases, which indicates that the inflow of retail capital is almost unidirectional.” he said.

According to the data, the ratio of Nvidia's forward price-earnings ratio to the S&P 500 price-earnings ratio fell to an all-time low, which means that the chipmaker's valuation relative to the benchmark index is more attractive than at any time in history.

Furthermore, Nvidia will announce its earnings report next Tuesday. In addition to the performance itself, the market's focus is expected to focus more on CEO candidates and management handover arrangements. The company's stock price is expected to be tested until the CEO is selected.