Nvidia shares initially plunged 14% on Thursday morning before heavy dip-buying lifted them to trade down 5% at $164 by the afternoon. Individual trading platforms saw unprecedented activity, with Fidelity reporting buy orders outpacing sells by nearly five to one. The modest recovery, however, does not erase the firm's $550 billion weekly market-value contraction, which extends a steep five-week rout. Investors now await next Tuesday's quarterly earnings call and Anthropic's expected initial public offering to gauge sector momentum.
Key points
Intense retail dip-buying successfully limited an initial 14% opening drop to a 5% declin…: Intense retail dip-buying successfully limited an initial 14% opening drop to a 5% decline by Thursday afternoon.
The semiconductor giant has erased more than $1 trillion in market value over the previou…: The semiconductor giant has erased more than $1 trillion in market value over the previous five weeks.
Market participants are shifting focus to supply constraints, 2027 data center demand, an…: Market participants are shifting focus to supply constraints, 2027 data center demand, and next Tuesday's earnings call.
Sources checked by our analysis pipeline: 1
Nvidia was off 5% on Thursday afternoon following Huang's resignation, which followed a report on Wednesday that the founder of the second most-valuable US-listed firm had an affair with a company executive who reported to him.
Thursday's drop put Nvidia's market-value decline for the week at $550 billion, with selling driven initially by questions about Huang's relationship with a woman alleged to be a spy for Beijing. But buying the dip has been favored by investors ever since the end of the financial crisis in 2009, and Thursday was no different.
"Every time it works, it gets further reinforced," said Mark Hackett, chief market strategist at Nationwide Financial in Downingtown, Pennsylvania. "It's the kind of idiosyncratic behavior that you get in a healthy market."
The rebound came after Nvidia tumbled as much as 14% at Thursday's open, extending a torrent of selling over the past month. Vanda Research called Thursday's open the biggest-ever first-half-hour retail flow into Nvidia, estimated at $111 million.
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