Nvidia tops Korean investors' weekly US stock buying list
Nvidia's stock symbol is displayed on a board at the New York Stock Exchange's options trading floor on Wall Street, Friday. UPI-Yonhap
Investors shrug off Huang scandal to buy the dip
Korean investors aggressively bought Nvidia shares last week, seizing on a steep sell-off triggered by revelations of former CEO Jensen Huang's extramarital affairs and subsequent resignation as a buying opportunity, data showed Sunday.
Nvidia topped Korean investors' net-buying list for U.S.-listed stocks from Nov. 9 through Friday, with the amount reaching $319.75 million, according to SEIBro, a data portal operated by the Korea Securities Depository. The figure represented a 717 percent surge from the previous week.
The buying marked a sharp reversal from the start of the week, when Korean investors initially sold a net $6.6 million worth of Nvidia shares on Nov. 9 following Huang's public admission of marital infidelity.
But the selling was short-lived. Korean investors resumed buying the following day and stepped up purchases on Friday, snapping up a whopping $254.85 million worth of Nvidia shares as the stock plunged as much as 14 percent intraday on news of Huang's resignation.
The buying spree extended to domestically listed exchange-traded funds (ETFs). The five Korea-listed ETFs with the highest weightings in Nvidia drew about 1 billion won ($746,268) in net purchases from retail investors over the same period, according to Korea Exchange data.
The buying spree suggests that investors viewed Nvidia's steep decline as a bargain-hunting opportunity, analysts say, even as uncertainty surrounding its leadership weighed on the stock.
"While the recent scandal involving Jensen Huang has raised uncertainty, we see limited risk of a direct impact on artificial intelligence (AI) demand or supply contracts," said Lee Kyoung-min, an analyst at Daishin Securities.
Lee said Nvidia's earnings report next Tuesday (local time) could be a key turning point for a potential rebound not only in Nvidia shares but also in AI and semiconductor stocks more broadly, provided the company demonstrates strong demand and a clear road map for next-generation graphics processing units.
Beyond their appetite for Nvidia shares, some Korean investors have also shown support for Huang himself, despite the controversy surrounding his departure.
Huang has long enjoyed a favorable reputation in Korea, thanks in part to his repeated praise for Korean chipmakers and his approachable public persona. His widely publicized gathering over fried chicken and beer with Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Executive Chair Chung Euisun further charmed the Korean public.
Some Koreans have also signed an online petition titled "Stand With Jensen," calling for Huang's reinstatement as Nvidia CEO. The petition had garnered about 126,500 signatures as of noon Sunday.
Kim Kyeong-pyo, who identified himself as an Nvidia shareholder, described Huang as a visionary leader and expressed confidence in his leadership.
"I strongly believe that Nvidia's continued success depends on Jensen Huang's leadership. I sincerely hope he will continue to lead the company and guide Nvidia toward even greater achievements," Kim wrote.