⚠️CHART OF THE WEEK: Retail investors are buying NVIDIA stock like never before
Mom-and-pop investors bought a huge amount of NVIDIA stock this week despite the drop
Retail investors purchased a at least $900 million of NVIDIA stock this week.
On Monday alone, retail traders bought a record $562 million of $NVDA shares.
This exceeded a previous high posted last year by ~$100 million, according to Vanda Research data.
Subsequently, retail investors purchased $362 million of the chipmaker’s stock on Tuesday.
Notably, in Q3 and Q4 2024, individual investors purchased a massive ~$14 billion and $7 billion worth of NVDA 0.00%↑ shares, respectively.
As a result, mom-and-pop investors' trading activity on NVIDIA skyrocketed this week after the stock was clubbed like a baby seal.
The last two years have taught many individual investors to buy every dip. One would even say that the buy-the-dip strategy has worked pretty well since the 2009 Great Financial Crisis low.
Meanwhile, $NVDA stock prices have gone nowhere for 8 months and are down ~22% form its January peak.
Investing in popular themes has become extremely dangerous.
It seems like diversification is still largely underappreciated in the markets.
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I hope they are not leading the sheep to the wolf den. Time will tell.
I wish you well.