Singapore Retail Investors Buy Nvidia Shares After CEO Resignation
Singapore investors increased buying of Nvidia stock following Jensen Huang's resignation, viewing the price dip as a buying opportunity despite governance concerns.
Singapore retail investors boosted purchases of Nvidia shares after the company's chief executive Jensen Huang resigned amid an alleged espionage and personal-conduct scandal. The resignation on Nov 12 triggered a 14% drop in the stock at the opening of U.S. trading and an 11% decline for the week, erasing roughly US$490 billion in market value.
According to Arpit Agal, head of brokerage at Syfe, buy orders surged to about 13 times the daily average on the platform, with 70% of clients trading U.S. stocks that day dealing in Nvidia. FSM Global reported trading volume rising to 11 times its October daily average and a buy-to-sell ratio of 1.35 for Singapore clients. IG noted that trading volume nearly sixfolded compared with the previous week and that the number of clients trading Nvidia roughly doubled.
Investors said the dip presented a buying chance. "Nvidia shares had already been on a steep decline even before news of Huang’s resignation broke, so I was monitoring it closely… When the price dipped further following the announcement, I picked up a few more," said Asiya Bakht, a 52-year-old investor whose holding is now worth five figures. Jaycee Lai, head of clients at IG, added that client activity suggested confidence in Nvidia’s underlying business remains relatively resilient.
While many traders increased exposure, some hedged positions. Syfe observed call options outweighing puts by about nine to one, though the proportion of put orders rose from 44% to 47% during the week. Moomoo Singapore recorded a three-fold rise in sell orders and a five-fold increase in put option contracts between Nov 6 and 9, yet clients remained net buyers.
The market is now focusing on Nvidia’s leadership transition. CFO Colette Kress has been named interim chief executive while the board searches for a permanent replacement. You Weiren, senior portfolio manager at FSM Global, noted that Huang’s role in technology direction makes the transition challenging but remained positive on Nvidia’s fundamentals, citing ongoing AI demand. Some investors, such as Marc Low, are waiting for further clarity before trading, while others, like banker Joel Tan, plan to sell their holdings.
Analysts warned that additional volatility could arise around Nvidia’s earnings announcement on Nov 17 and a congressional briefing scheduled for Nov 18.