Retail Investors Pull Back on Nvidia: Daily Purchases Plummet from $444M to $75M in September 2025

• Why Are Retail Investors Abandoning Nvidia?
• How Did China’s Chipmakers Exploit the Gap?
• Is Nvidia’s Market Dominance at Risk?
• What’s Next for AI Chip Demand?
• FAQs: Nvidia’s Retail Investor Retreat

Nvidia, the AI chip giant that fueled the market’s bull run, is facing a stark slowdown in retail investor enthusiasm. In just days, daily buys collapsed from $444 million to a mere $75 million—a drop that’s rippling across the S&P 500, where Nvidia holds a 7% weight. Chinese rivals are capitalizing on U.S. export restrictions, with firms like MetaX and Cambricon rolling out competitive chips. Meanwhile, Wall Street analysts, including Citigroup’s Atif Malik, warn of a "breather" for Nvidia’s stock after its 1,150% surge over three years. Here’s why the retail frenzy is fading and what it means for the broader market.

Why Are Retail Investors Abandoning Nvidia?

The numbers tell a brutal story. On August 28, 2025, retail traders snapped up $444 million worth of Nvidia shares. By September 2, that figure cratered to $146 million, and as of September 5, it’s hovering at $75 million—an 83% free fall in under a week. Goldman Sachs data reveals monthly inflows shrinking to $50 billion from $140 billion earlier this year. "The party’s winding down," quipped one BTCC analyst. "Retail traders chased the hype, but now they’re asking, ‘What’s next?’" Nvidia’s 5% monthly drop contrasts sharply with the S&P 500’s 2% gain, proving its outsized influence.

How Did China’s Chipmakers Exploit the Gap?

When U.S. regulators blocked Nvidia’s high-end AI chip exports to China, Beijing didn’t sulk—it doubled down. Alibaba, once a top Nvidia customer, now designs its own chips, with its latest model reportedly avoiding U.S. tech entirely. Shanghai’s MetaX stole headlines in July by unveiling an H20 alternative boasting larger memory (though it’s a power hog). Meanwhile, Beijing-based Cambricon posted a $247 million Q2 revenue spike, driven by its Siyuan 590 chip. "China’s moving faster than Wall Street predicted," noted a TradingView report. Even Trump’s July greenlight for Nvidia’s H20 exports flopped after Chinese regulators cited "security risks."

Is Nvidia’s Market Dominance at Risk?

Despite the retail exodus, Nvidia remains the S&P 500’s largest stock, with a 7% market-cap share per FactSet. But cracks are showing. Citigroup’s Malik predicts a pause after its "six-month sprint," pinning hopes on CEO Jensen Huang’s October 28 GPU Tech Conference keynote. The stock’s still up 27% year-to-date, but as one fund manager put it, "Trees don’t grow to the sky." Compounding the pain: Nvidia’s overseas revenue is under siege, and domestic buyers are tapping the brakes. "This isn’t a collapse—it’s a reality check," added the BTCC team.

What’s Next for AI Chip Demand?

MetaX’s mass-production announcement and Cambricon’s $87 billion valuation suggest China won’t back down. For U.S. investors, the question is whether Nvidia’s software moat (like its CUDA platform) can offset hardware competition. "The AI Gold rush isn’t over, but the shovel sales are slowing," joked a CoinMarketCap analyst. With retail momentum fading and alternatives emerging, Nvidia’s next act hinges on innovation—not just hype.

FAQs: Nvidia’s Retail Investor Retreat

How much did retail investors cut Nvidia purchases?

Daily buys dropped from $444 million on August 28 to $75 million by September 5, 2025.

Which Chinese firms are challenging Nvidia?

MetaX (H20 substitute) and Cambricon (Siyuan 590 chip) are gaining traction, with Cambricon hitting $247 million Q2 revenue.

What’s Nvidia’s weight in the S&P 500?

7%, making it the index’s largest single stock, per FactSet.