Nvidia's $24.5B Volume Dips 34% Yet Dominates Market Activity

On August 21, 2025, Nvidia (NASDAQ:NVDA) recorded a trading volume of $24.52 billion, a 33.95% decline from the previous day, ranking it first in market activity. The stock closed with a 0.24% decline, reflecting mixed sentiment amid evolving market dynamics.

Recent developments highlight the interplay between Nvidia’s strategic partnerships and sector-specific trends. A sell signal from Coherent, a key supplier in Nvidia’s AI ecosystem, contributed to short-term volatility. Meanwhile, the company’s expanded support for RISC-V processors in China underscores its pivot toward open-source architectures, aligning with Beijing’s push for domestic chip self-sufficiency. This move could enhance long-term market access but introduces regulatory and geopolitical uncertainties.

Strong demand for AI server infrastructure has driven analyst optimism, with several firms raising price targets for Nvidia and other AI-focused equities. However, the recent easing of U.S. export restrictions on H20 chips has intensified competition in China, where domestic firms like Huawei and DeepSeek are gaining traction. Nvidia’s collaboration with Chinese officials, including a high-profile meeting with Commerce Minister Wang Wentao, signals cautious optimism about cross-border AI cooperation despite lingering trade war concerns.

Historical backtesting of a strategy involving the top 500 stocks by daily trading volume from 2022 to 2025 showed a compound annual growth rate of 6.98%, with a maximum drawdown of 15.59%. The approach demonstrated steady growth but faced a notable correction in mid-2023, emphasizing the need for risk management in volume-driven strategies.