After Jensen Huang stepped down, Nvidia (NVDA.US) shares plunged; retail investors bought up $111 million within half an hour of the market opening.

According to Jinse Finance, retail investors are still betting on a rebound in Nvidia (NVDA.US) stock price. After CEO Jensen Huang stepped down, Nvidia’s stock plunged, with retail investors quickly rushing in to snap up shares. Citing its historical data, Vanda Research reported that in the first 30 minutes after the US stock market opened on Thursday, retail investors’ net purchases of Nvidia stock reached $111 million, setting a new record for net purchases within the first half hour of trading.

Vanda Research added that this amount was 40 times higher than the normal opening level. As of Wednesday, Nvidia accounted for 61% of all retail net purchases of US stocks and exchange-traded funds (ETF) for the week.

“For retail investors, even though their beloved Jensen Huang has stepped down, their enthusiasm for Nvidia has not waned,” wrote Vanda analyst Viraj Patel in the report.

Nvidia’s intraday drop reached 14%, buying on the dip narrowed the decline

The above data shows that after Jensen Huang resigned due to a scandal, investors were eager to seize the opportunity to buy shares in the company at the core of the AI boom. On Thursday, as news of Huang’s departure spread, the company’s stock plunged as much as 14%. However, as investors focused on the long-term demand related to AI technology, selling quickly eased on the day. The stock finally closed down 4.3%.

Patel wrote that dip buying also spread to leveraged funds tracking Nvidia, which recorded the fifth largest three-day fund inflow in history. “In contrast, inverse funds shorting Nvidia, despite a high turnover rate, did not see a net purchase, indicating that retail capital inflow is almost one-sided,” he said.

Data shows Nvidia’s forward price-to-earnings ratio compared to the S&P 500 has dropped to a historic low, making the chipmaker’s valuation relative to the benchmark index more attractive than ever.

In addition, Nvidia will release its financial report next Tuesday. Besides the performance itself, market attention is expected to focus more on the CEO selection and management handover arrangement. Until the CEO candidate is clarified, the company’s stock price is expected to remain under pressure.