Retail investors are gradually moving away from Nvidia, with investment slowing down and the amount of investment decreasing from a tidal influx a few months ago to the current state. This trend is particularly evident during one week this year: on August 28, the purchase volume of Nvidia stocks by retail investors was $444 million, which fell to $146 million by Tuesday of this week, and by Friday, it had already dropped to $75 million. This sharp contraction is indeed thought-provoking. Although the overall market has not collapsed, Nvidia's performance has not been satisfactory. Its stock market share still accounts for over 7% of the S&P 500, adding significant burden to the entire market.

Looking back over the past three years, Nvidia's stock has skyrocketed by 1150%, with a torrent of retail investor funds once propelling it further. However, this craze has clearly subsided now. According to Goldman Sachs, the current monthly inflow is only about $5 billion, a significant drop compared to $14 billion at the beginning of the year. Nevertheless, Nvidia's stock price has still grown by 27% so far in 2025, but the market's optimistic sentiment is fading, serving as a warning signal for the entire market.

Citigroup analyst Atif Malik pointed out that after a strong performance over the past six months, Nvidia's stock price is expected to temporarily adjust. He believes that Jensen Huang will bring new stimuli at the GPU Technology Conference on October 28. However, before that, Nvidia's stock price may stagnate or further decline. In addition, the lukewarm attitude of American retail investors is not the only difficulty for Nvidia. As U.S. regulations impose export restrictions on high-end chips, Chinese AI chip manufacturers are beginning to rise to fill this gap. Companies like Alibaba are developing their own chips, accelerating their shift towards independent innovation, driven by Beijing.

Despite the Trump administration's approval in July for Nvidia to continue exporting its H20 chips to China, Chinese authorities have discouraged companies from purchasing them, citing security risks, which Nvidia believes do not exist. This controversy has led to a freeze in demand in the Chinese market, allowing Chinese companies to quickly step in. Shanghai's MetaX announced in July that it is developing an H20 substitute and is preparing for mass production. Beijing's Cambricon Technologies also performed well in the second quarter of this year, generating $247 million in revenue, mainly due to strong orders for its Siyuan 590 chip. Although the company's stock plummeted due to excessive speculation, its market value still exceeds $87 billion, and if orders hold, further revenue growth is expected.