Retail Investors Set Record-Breaking Nvidia Purchases Amid DeepSeek AI Concerns

Retail Investors Set Record-Breaking Nvidia Purchases Amid DeepSeek AI Concerns

Retail investors bought a record $562.2 million worth of Nvidia (NASDAQ: NVDA) shares after a 17% drop in its stock price. The selloff was driven by concerns over competition from a low-cost AI model launched by Chinese startup DeepSeek, according to Vanda Research data reported by Reuters.

The sharp decline erased $593 billion from Nvidia’s market valuation. Despite the downturn, retail investors have consistently supported the stock, purchasing $7.3 billion worth of shares in the last quarter—nearly half the peak seen in September 2024.

While global technology stocks have regained some stability, they remain under pressure as investors reevaluate the lofty valuations of AI-focused companies. Nvidia’s dominance in the AI sector is now under scrutiny following DeepSeek’s new offering, raising questions about its market position.

Nvidia did not immediately respond to requests for comment. However, shares of Nvidia were up more than 5% in Tuesday’s premarket trading.