Retail Investors Pull $258M from Nvidia Stock—Will Bitcoin Be Their Next Bet?

Retail investors are pulling back from Nvidia in a big way—prompting a growing question across markets: will that money flow into Bitcoin or other high-risk assets?

According to recent data from Vanda Research, retail traders sold off roughly $258 million worth of Nvidia shares in the week ending June 4. That marks the steepest retail outflow from Nvidia in nearly a decade. The selloff follows a wave of strong gains in 2023 and 2024, when retail investors capitalized on Nvidia’s dominance in AI and semiconductor markets. But now, sentiment is shifting.

Vanda’s latest sentiment tracker shows retail confidence has flipped. A gauge that once leaned 10 points toward "buy" is now over 15 points tilted toward "sell", a sharp reversal that aligns with broader May data from Sherwood, which recorded $4.9 billion in retail outflows—Nvidia’s largest since 2015.

Some of the selling appears to be profit-taking. Others see it as a rotation. According to analysts, including Ben Bajarin, Nvidia’s current valuation reflects much of its expected growth. For retail traders eager for more upside, that’s a signal to move on. Geopolitical concerns, like U.S.-China chip restrictions and new tariffs, are only adding to the caution.

What’s next for the retail crowd?
One possible answer is crypto. More specifically, Bitcoin. Historically, Nvidia and Bitcoin have been tightly linked—thanks largely to Nvidia’s role in powering crypto mining hardware. A 2024 study found their price correlation exceeded 0.80, meaning the same crowd that played Nvidia’s AI rise is no stranger to crypto markets.

Still, Bitcoin has lagged behind Nvidia in performance over the last five years—992% gains compared to Nvidia’s 1,523.1%. And while Bitcoin’s current price action remains stable, there's no solid evidence yet of a mass retail migration from Nvidia into crypto. Institutions are continuing to accumulate Bitcoin, while retail investors remain on the sidelines—for now.

Instead, retail money appears to be chasing smaller, more volatile AI stocks, where potential gains are higher, albeit with increased risk. This trend suggests that while crypto may be on the radar, it’s competing with a broad range of speculative plays in a market defined by uncertainty.

Macro signals—like interest rate shifts, regulatory clarity, and the ongoing global trade narrative—could ultimately determine whether retail capital finds its way into Bitcoin or continues hopping between AI-related assets.