Falling fiercely, rising fiercely! NVIDIA ranks second in S&P performance, retail investors crazy about bottom fishing

After three consecutive days of decline, NVIDIA made a strong comeback, staging a thrilling "roller coaster" market.

In the U.S. stock market on Tuesday, NVIDIA rebounded strongly by 6.8%, ending the "three-day decline" streak, ranking second in daily gains among 500 S&P component stocks, and the company's market value returned to over $3 trillion.

NVIDIA's Plunge: Some Rejoice, Some Worry

However, in the first three trading days, NVIDIA plunged successively, exceeding the 10% pullback threshold, hitting the largest drop in two months.

This has caused significant losses for NVIDIA's "believers" and retail investors attracted by the stock split, while for investors who had been watching from the sidelines, this pullback became an opportunity to enter the market.

Steve Sosnick, Chief Strategist at Interactive Brokers, pointed out that over the past five days, investors have shown a strong bias towards buying NVIDIA.

Sosnick noted that on the Interactive Brokers trading platform, the GraniteShares 2x Long NVDA Daily ETF (NVDL), which is leveraged to double the performance of NVIDIA, ranked 11th in trading volume, showing a trend of net buying.

In the options market, Sosnick also found that options trading around NVIDIA showed a positive bias in Delta values, with investors more frequently buying call options or selling put options.

Data from Vanda Research, which tracks individual investor behavior, actually shows that NVIDIA has had strong retail buying interest throughout 2024, with a significant increase in daily retail fund inflows after the Q1 earnings report was released at the end of May.

Morgan Stanley: Continues to be Bullish on NVIDIA's Prospects

On Tuesday, Morgan Stanley analyst Joseph Moore released a report reaffirming a positive stance on NVIDIA's stock.

Moore stated:

"Demand signals remain strong, with incredible demand for H100 and increasing visibility of orders for H200 production. Blackwell's demand is booked into mid-next year, and strong production growth in the Chinese market for H20."

Moore also acknowledged the current mixed supply chain situation but also mentioned:

"Since the financial report was released, the market value of the stock has increased by nearly $1 trillion. Therefore, the good prospects have at least partially discounted - but we can report that the prospects are indeed still good."

UBS analyst Karl Keirstead also expressed strong optimism about NVIDIA:

"Consistent with our previous survey results, NVIDIA remains the primary choice for training and inference workloads, with respondents now more inclined towards the Hopper architecture and away from traditional and low-end GPUs."