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Nvidia stock crash: Retail traders say they're holding on after big drop

Jan 30, 2025 - markets.businessinsider.com
Nvidia experienced a significant sell-off, losing nearly $600 billion in market value due to concerns over DeepSeek, a new AI app from a Chinese startup. Despite the 17% drop in shares, retail investors remain optimistic, viewing the decline as a buying opportunity. Many traders, including those who spoke to Business Insider, expressed confidence in Nvidia's long-term growth and tech dominance, dismissing DeepSeek's impact as temporary and overblown. Retail traders purchased a record amount of Nvidia stock during the sell-off, with a net inflow of $921 million over two days.

Investors like Shade Gotau, Kiana Danial, Kaihan Toofan, Trace Graham, and Chris D. are undeterred by the recent market fluctuations, citing Nvidia's strong fundamentals and historical resilience. They believe the sell-off was an overreaction and plan to continue buying shares. Analysts, such as Dan Ives from Wedbush Securities, also maintain a bullish outlook on Nvidia, emphasizing its leadership in AI technology and infrastructure. Overall, the sentiment among retail investors and analysts suggests confidence in Nvidia's ability to recover and maintain its position as a leader in the AI sector.

Key takeaways:

  • Nvidia experienced a significant sell-off due to DeepSeek's impact on the tech sector, but retail investors see it as a buying opportunity.
  • Retail traders purchased a record amount of Nvidia stock during the sell-off, indicating strong confidence in the company's long-term prospects.
  • Investors remain optimistic about Nvidia's dominance in AI technology despite the emergence of DeepSeek as a potential competitor.
  • Analysts and investors believe Nvidia's fundamentals remain strong, and the company's position in the AI market is not threatened by DeepSeek.
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