Small investors buy Nvidia in record numbers after Thursday’s open
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Retail investors flocked Nvidia on Thursday following the chipmaker’s latest earnings report, according to VandaTrack.
Mom-and-pop traders recorded their highest net buying levels in the stock in the first 80 minutes of a trading day dating back to at least 2012, according to analyst Viraj Patel. Patel said retail was not behind the sales, which led to a weak response to the blockbuster results.
There is one caveat: Patel said there has been strong sales as well as buying at the chip maker. That could help explain the stock’s sharp move in morning trading, he added.
“The flows are two-way, Patel wrote in his Thursday note. “Total retail sales turnover [Nvidia] It was pretty epic at the beginning of the session too.”
Thursday’s move comes on the heels of AI Darling’s earnings that beat analyst expectations and came with strong guidance. Nvidia also reported a 75% revenue increase in its core data center business, which helped the company’s overall sales increase by 73%.
Despite trading modestly higher before the bell, shares were down more than 4% in midday trading.
Nvidia, 1-day chart
broadcom, iShares Extended Technology-Software Sector ETF (IGV) And iShares Semiconductor ETF (SOXX) Patel said “spread buying” was seen as retail investors increased their activity more broadly.
““If this continues, we could be heading for one of the biggest days of retail single stock buying in months, which is very important to the overall risk outlook,” Patel said.
Of course, ordinary investors were relatively wary of Nvidia’s report. Vanda said Wednesday that average daily net flows in the five-day window before publication were $94 million, about half of what was seen in the previous report.
Nvidia has been among the best stocks for retail investors since 2023, according to Vanda data. Despite Thursday’s decline, Wall Street is on an uptrend: The buy rating and price target of typical analysts surveyed by LSEG suggest the shares could rise more than 35% over the next 12 months.
