Nvidia’s shares experienced a significant drop on Monday, marking one of the worst losses in years for the AI technology giant. The stock fell over 5% to around $120, reaching its lowest price since its 10-for-1 stock split in June. This decline followed previous drops of 3.5% and 3.2% on Thursday and Friday, bringing the total loss from Tuesday’s peak to nearly 12%. During this time, Nvidia’s market cap decreased by $400 billion, with a total drop of over $500 billion since Thursday. Despite these losses, Nvidia remains the third-largest company in the world, behind Apple and Microsoft.
The broader market saw positive movement on Monday, with the S&P and Dow Jones both rising, but the tech-heavy Nasdaq fell by 0.2%, reflecting Nvidia’s impact on market-cap-weighted indices. While Nvidia’s performance has been strong overall this year, with a 140% return to investors and a 1000% return from its 2022 low, the recent decline has raised concerns about its valuation. The company’s founder and CEO, Jensen Huang, saw a drop in his net worth by over $5 billion due to the stock market crash, but he remains one of the wealthiest individuals globally.
In conclusion, Nvidia’s recent losses mark a notable setback for the AI giant, raising questions about its valuation and future growth prospects. Despite these challenges, Nvidia remains a key player in the technology sector and a significant force in the market.
Article Source
https://www.forbes.com/sites/dereksaul/2024/06/24/nvidia-stock-sinks-another-5-market-cap-down-500-billion-from-last-weeks-peak/
