Retail investors pour $1.6 billion into Nvidia in 3 days: Are they buying the dip or catching a falling knife?

Retail investors are doubling down on Nvidia (NVDA), purchasing approximately $1.6 billion worth of shares in just three trading days ending Wednesday, November 11, marking their largest three-day buying spree in at least 12 months.

According to market data, retail investors bought a net $590 million of Nvidia shares on Monday, followed by $730 million on Tuesday, their biggest single-day purchase since March. Another $300 million flowed into the stock on Wednesday.

The buying frenzy comes despite significant volatility in Nvidia shares, as investors assess the implications of former CEO Jensen Huang's departure and the controversy surrounding his personal relationships.

Retail investors double down despite falling prices

Data from J.P. Morgan Equity Strategy & Quantitative Research highlights a striking divergence between Nvidia's share price and retail investor activity.

The firm's chart, updated through November 11, shows substantial positive retail buying imbalances even as Nvidia shares declined sharply in recent sessions.

The buying momentum continued into Thursday. During the first 30 minutes of trading, retail investors purchased $455 million of Nvidia shares while selling $345 million, resulting in approximately $111 million in net purchases.

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This represented the largest net retail buying recorded during the opening 30 minutes of any trading session, according to the accompanying market data.

The figures suggest that individual investors remain willing to accumulate Nvidia shares despite uncertainty surrounding the company's leadership and near-term outlook.

Leveraged Nvidia ETFs attract another $465 million

Retail enthusiasm has extended beyond direct stock purchases into leveraged exchange-traded funds.

The 2x leveraged long Nvidia ETF, NVDL, attracted $401 million in inflows over the three-day period, putting it on track for its largest weekly intake since November 2025.

Another leveraged Nvidia product, NVDU, received $64 million, potentially marking its strongest weekly inflow since February 2026.

These products seek to deliver twice Nvidia's daily share-price performance, magnifying both gains and losses.

However, daily rebalancing and market volatility can cause their longer-term returns to differ substantially from twice the stock's cumulative performance.

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Nvidia's leadership crisis adds uncertainty

The retail buying spree comes as Nvidia faces heightened scrutiny following Huang's departure and reports concerning his personal relationships.

Investors are now looking towards the company's third-quarter earnings, scheduled for next Tuesday, for clarity on its financial performance and the resilience of AI infrastructure spending.

Meanwhile, US stock futures edged higher on Friday despite Thursday's market decline. Dow futures gained 0.1%, S&P 500 futures rose 0.2%, and Nasdaq-100 futures advanced 0.1%.

Rising Treasury yields, elevated oil prices and expectations of a December interest rate hike have added to broader market uncertainty.

Smart dip-buying or catching a falling knife?

For investors, the central question is whether Nvidia's recent weakness represents an attractive entry opportunity or signals further downside.

Strong demand for AI computing infrastructure could support Nvidia's longer-term prospects. However, leadership uncertainty, elevated valuations and broader market volatility remain important risks.

The $1.6 billion buying spree demonstrates retail investors' conviction, but heavy inflows alone cannot guarantee a recovery. Investors purchasing during a correction could benefit from a rebound, while those using leveraged products face potentially amplified losses if the decline continues.

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