NVIDIA (NVDA) shares experienced a 6% drop on Monday, closing at $118.11 per share as investors shifted away from the AI powerhouse. This marked the third consecutive day of losses for the chip giant, with the stock down over 12% from its all-time high of $135.58 last week. While momentarily surpassing Microsoft (MSFT) to become the most valuable company, Nvidia has since fallen behind both Microsoft and Apple (AAPL) in market capitalization.
The company’s recent stock split and strong performance in boosting the S&P 500 (^GSPC) and the Nasdaq (^IXIC) led to a surge in stock value, but analysts remain divided on the long-term implications of the recent sell-off. Bank of America and Jefferies have maintained Buy ratings on the stock, with price targets ranging from $150 to $135, praising Nvidia’s dominance and potential in the market.
However, Patrick Moorhead of Moor Insights & Strategy warned that investors should monitor signs of a possible pullback in the future. He highlighted the importance of examining the profitability of software companies like Adobe, Salesforce, SAP, and ServiceNow, as their adoption of new AI features could impact Nvidia’s growth and market position.
Nvidia CEO Jensen Huang has been a key figure in the company’s success, speaking at events like the Computex 2024 expo in Taipei, Taiwan. Despite the recent fluctuations in stock value, analysts and investors remain optimistic about Nvidia’s future prospects in the AI industry.
In summary, Nvidia’s recent stock performance has seen significant volatility, with a sharp decline in value following a period of rapid growth. Analysts are split on the long-term outlook for the company, with some highlighting the potential for continued dominance in the market while others caution against possible pullbacks. Overall, Nvidia’s role in the AI sector and its relationships with key software companies will be key factors in determining its future success.
Article Source
https://finance.yahoo.com/news/nvidia-stock-falls-more-than-6-as-investors-rotate-out-of-chip-heavyweight-165458081.html
