Retail Investors Snap Up Nvidia Stock Amid AI Concerns
Retail investors made a significant move in the stock market on Monday, purchasing a record amount of Nvidia shares valued at $562.2 million. This surge comes in the wake of a dramatic decline in Nvidia's market value, which dropped 17% or about $593 billion, following fears surrounding a new low-cost artificial intelligence model introduced by Chinese startup DeepSeek.
According to Vanda Research, this latest buying spree marks the highest net retail purchase of Nvidia shares since records began in 2014. Over the last quarter, retail investors have bought approximately $7.3 billion worth of Nvidia stock, although this amount represents nearly half of the peak noted in September 2024.
The broader technology sector experienced a recovery on Tuesday, though it remains under pressure as the entry of the affordable AI solution from DeepSeek raised questions regarding the valuation and market dominance of established AI players like Nvidia.
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