Indian investors buy the Nvidia dip despite CEO exit and stock slump: Vested Finance

Indian investors continued buying shares of US chipmaker Nvidia despite a sharp decline in its stock price and uncertainty over the company's leadership, with Vested Finance trading data showing sustained buying interest over the past 10 sessions.


Buying exceeded selling in eight of the last 10 trading sessions on the platform, accounting for around 70% of the combined buy and sell volumes, suggesting that investors were using the stock's decline as an opportunity to increase their exposure.


The buying trend became more pronounced in the latest two sessions, with purchases accounting for approximately 80% of trading activity on November 10 and 11, according to Vested Finance data.

Investor participation in the stock also increased significantly during the period. Average daily trading volume in Nvidia shares on Vested during the last five sessions was around five times higher than in the first five sessions.

November 5 witnessed a particularly sharp increase in activity, with trading volume rising approximately 400% compared with the previous session.

The data suggests that buying interest remained strong even as overall trading activity eased from its peak. The continued dominance of purchases over sales points to net accumulation of Nvidia shares among investors on the platform.

"On Vested, Nvidia buying became more pronounced in the last two sessions. Purchases accounted for around 80% of trading activity on November 10–11. Participation increased across the period, with average daily trading volume in the last five sessions around 500% higher than in the first five. The pattern suggests net accumulation of Nvidia shares among Vested investors. Buying continued to outweigh selling even as overall activity eased from its peak," Vested Finance said.

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The buying activity comes at a turbulent time for Nvidia, whose shares have faced pressure following the resignation of its co-founder and chief executive Jensen Huang amid reports concerning his personal life.

Huang stepped down on November 12, triggering uncertainty over the future leadership of the chipmaker. Nvidia shares fell sharply following the announcement, with the stock declining around 12% over the week, according to the figures available.

The company's chief financial officer, Colette Kress, has taken over as interim CEO as the board begins its search for a permanent successor. Kress will continue serving as executive vice president and CFO alongside her interim responsibilities. The company said it would consider both internal and external candidates for the top position.

Nvidia has also appointed Harvey C. Jones, former CEO and executive chairman of Synopsys, as the first-ever chair of its board of directors.

The leadership transition marks a significant change for Nvidia, which Huang co-founded and led for more than three decades. The board has expressed confidence in Kress and the existing leadership team, saying that the company's operations, customer commitments and product roadmap are expected to continue without interruption.

Meanwhile, activity in the options market also points to investors positioning for a potential longer-term recovery in Nvidia shares, even as near-term volatility rises.

According to a Reuters report, options traders moved to take profits on some bearish positions and extend bullish bets further into 2027 following Huang's departure. Several large trades indicated that investors were lowering their upside price targets and taking profits on downside protection rather than abandoning their exposure to the stock altogether.

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One investor paid approximately $18.8 million for call spreads, a strategy that could benefit if Nvidia shares rise around 16% by March. Another trade involved selling put options and purchasing cheaper ones, generating approximately $18.9 million while retaining some downside protection.

Nvidia's 90-day implied volatility also climbed to around 52% from approximately 33% a month earlier, reflecting heightened uncertainty among options traders ahead of the company's earnings announcement, Reuters reported.

The company's valuation has also come under scrutiny following the recent correction. According to Reuters, Nvidia's forward earnings multiple had fallen to around 12 times expected earnings, its lowest level since 2012.

The contrasting trends in retail trading and the options market suggest that investors are adjusting their exposure to Nvidia amid leadership uncertainty, rather than uniformly abandoning the stock.

Nvidia is scheduled to announce its third-quarter fiscal 2027 results on November 17, followed by an earnings call. The results and management's commentary will be closely watched for indications of the company's growth outlook and strategic direction following Huang's departure.

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here