Shares of Nvidia (NVDA) entered a free fall Thursday with the resignation of CEO Jensen Huang, and retail investors were there to catch him. The question now is whether they bought the bottom or just the first step down.
Huang resigned as CEO of Nvidia after two cases were announced, and CFO Colette Kress is stepping in as interim CEO. The stock fell as much as 14% at the open to its lowest level since June 2025, then recovered nearly three-quarters of that to close down about 4%. Nvidia reports earnings Tuesday without a permanent CEO in sight.
Small investors bought a net $111 million worth of Nvidia shares in the first 30 minutes of trading. According to Vanda Research, this is the largest opening on record and more than 40 times a normal opening. Nvidia took in 61% of all retail purchases of U.S. stocks and ETFs this week. Money was also invested in leveraged funds betting on Nvidia’s gains, while funds betting against it returned nothing.
“This is a one-sided story for retail,” Vanda wrote.
Mike Zaccardi, CFA and CMT, called it “one of the most epic news buying events in history” on X.
What the chart says
The stock briefly fell below $153, the level that capped it from late 2024 until last June. He then resumed his most intense exchanges in more than a year. An old ceiling turned floor is a classic sign that buyers are stepping up and gives marketers a clear line in the sand. A break below Thursday’s low would negate the pattern.
The title also seems depressed. Its momentum values – a measure of how fast it is moving – are deeply oversold on a daily chart and almost on a weekly chart. Nvidia stock is on track for its worst month since September 2022.
“We’re getting closer to capitulating $NVDA,” Alphatrends founder Brian Shannon posted on
What the story says
At its lowest point, Nvidia was down 38% from its October record, almost as bad as its COVID and tariff-related falls. Both rebounded to new records in three months. The slides of 2018 and 2022 were deeper and lasted seven to 14 months.
Days like Thursday have mostly paid off. Thursday was the seventh session since 2010 in which Nvidia fell at least 10% and recovered at least half of the decline by the close. The title was higher a year later after five of the first six. The exception was January 2022, the start of a massive sell-off.
Wall Street is not backing down either. Rosenblatt’s Kevin Cassidy retained his Buy rating, writing that “we expect employees, suppliers and customers to rally around the company.” James Schneider of Goldman Sachs also opted for a buy, calling Huang’s exit “significant, but measured negative for the stock.”
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