The signal of retail investors retreating and the hidden flow of institutional acceptance are intertwined, NVIDIA Corporation (NVDA.US) is at a crucial juncture testing the life and death line of 170 USD.

Individual investors have been continuously buying NVIDIA Corporation (NVDA.US) for a long time, making it the largest company by market value in the S&P 500 index. However, this Wednesday, these investors net sold the stock for the first time since July last year, against the backdrop of conflicts from GEO Group Inc dragging down the market from the AI-driven rally, this trend may indicate a potential shift in investment sentiment. According to Vanda Research, the net selling scale of individual investors this time is not large, only $44.9 million, compared to NVIDIA Corporation's market value of over $400 billion, it is just a drop in the bucket. However, the institution believes that this may be a positive signal - retail investors are often the last group of funds to retreat, and their exit may indicate that a rebound is imminent. Vanda Research wrote to clients in a report on Thursday: "From historical experience, this kind of fund flow pattern usually has a positive and constructive meaning." The last time a similar situation occurred was on July 2nd, and in the following six weeks, NVIDIA Corporation's stock price rose by approximately 20%. Vanda Research believes that "when retail investors are selling, it may be the time when institutions are picking up on the other end.". However, BTIG pointed out that the recent decline in the stock has brought it close to a key technical level, which may trigger a rebound, but it could also signal that the stock price may experience a significant drop. Against the backdrop of a lower market on Thursday, NVIDIA Corporation fell by over 4%, closing near $171.24, marking the lowest level since mid-December. Jonathan Krinsky, Chief Market Technician at BTIG, said, "NVIDIA Corporation is approaching the critical support level of $170. If the closing price falls below this level, it may mean that a major top has formed, with the next downside risk towards the $150 level.". Although the S&P 500 index has fallen by more than 5% this year, the semiconductor sector as a whole has recorded gains. However, Krinsky also noted a concerning signal: the stock price of Micron Technology, Inc. has fallen for six consecutive trading days, down over 20% from its peak, despite the company's recent positive financial performance. He pointed out that since 1999, there has not been a situation where a stock has dropped around 20% from its 52-week high and continued to fall for six days in a row, adding, "When good news encounters selling pressure, it is necessary to be cautious.". The pullback of NVIDIA Corporation may also be in a similar situation. Krinsky said, "NVIDIA Corporation is the world's largest company by market value, and the semiconductor sector is the largest industry sector in the S&P 500 index. If this sector breaks down, it will obviously have a negative transmission effect on the overall market.". However, Vanda Research also sees optimistic reasons, as heavy selling pressure at the beginning of Wednesday gradually turned into net buying at the close. The institution believes that if retail funds show net inflows again on Thursday, it may mean that the "market animal spirit is reignited." Unfortunately, on Thursday, tech stocks continued to face selling pressure, and NVIDIA Corporation closed down by 4.16%.