Nvidia's recent price movement is largely influenced by a surge in retail investor interest, as evidenced by significant fund inflows into leveraged Nvidia ETFs. On January 27, retail traders aggressively bought the dip in Nvidia stock, following a correction in AI-related stocks earlier in the week. This retail-driven buying spree has been a consistent trend, acting as a backstop for the US equity market. Despite institutional investors reducing their exposure to Nvidia and other tech stocks, retail investors have shown unwavering confidence, contributing to the stock's resilience. Additionally, the broader semiconductor sector received a boost from Samsung's positive outlook on the DRAM market, which is expected to recover in the second quarter of 2025.
The YieldMax NVDA Option Income Strategy ETF (NVDY) rose to $19.43, marking a 0.34% increase as of 10:00 AM ET on January 31st.