Retail investors have executed one of the largest “buy the dip” strategies on Nvidia in history, profiting over $1 billion in just 24 hours. This stands out because individual traders typically avoid market sell-offs, instead staying inactive during such periods. Instead, they were net buyers at unusually high volumes—over 800 million shares trading at an average price of $120.95, totaling nearly $100 billion in volume.
This buying spree marked a significant shift from previous patterns where retail activity was much lower. The surge suggests that Nvidia’s decline presented a compelling opportunity for investors who took advantage of the wave-like selling pattern.
The extent of this buying activity—wherein retail purchases exceeded sales by over 200,000 shares—is unprecedented in recent memory. Analyst Steve Sosnick of Interactive Brokers highlighted this phenomenon, noting that such imbalance is rare and indicative of a well-timed trade.
Nvidia’s stock rebounded strongly on Tuesday, rising nearly 9% from Monday’s close after the “buy the dip” activity. This reflects the profitability of the strategy adopted by retail investors.
Notably, institutional players remain among the largest sellers in this context. However, their delayed response to the DeepSeek AI model suggests a disconnect or overvaluation relative to fundamental metrics like earnings per share (EPS).
Sosnick cautions that while retail traders may have outperformed institutional players in this instance, such outcomes are not uncommon and highlight both the effectiveness of “buy the dip” strategies and the challenges faced by larger market participants.
Source: https://www.axios.com/2025/01/28/nvidia-shares-deepseek