Nvidia shares experienced a significant drop of 16% last week, resulting in a market value reduction of $431 billion. The sudden decline, without any major news driving it, has led some analysts to attribute it to profit-taking by investors. Despite this decline, some experts on Wall Street view the situation as an opportunity to purchase shares at lower prices.
The decline in Nvidia’s stock began on Thursday when it reached a new high of $140.76 per share but quickly fell back to around $130 by the end of the day, marking a 7% intraday decrease. Subsequently, the stock continued to decline, dropping by 3% on Friday and an additional 7% on Monday. Overall, Nvidia shares are currently down 16% from their peak. The recent selloff appears to be driven by profit-taking activities from investors given the substantial gains the stock has experienced over the past year.
CEO Jensen Huang has been selling shares since June, totaling 720,000 shares in 10b5-1 scheduled stock sales, although he still retains a significant number of shares in the company. This profit-taking trend seems to be a key factor contributing to the stock’s adjustment.
Industry experts like Neil Roarty and R “Ray” Wang believe that the recent decline presents a buying opportunity for investors. Wang specifically views the pullback as an opportunity to capitalize on the market sentiment and considers it a good time to buy the dip. Despite the short-term decline in Nvidia stocks, analyst Vivek Arya from Bank of America remains optimistic about the company’s potential for long-term growth. He outlined five reasons why investors should stay positive on Nvidia.
Overall, despite the recent challenges faced by Nvidia shares, some Wall Street analysts consider the current situation as a chance to invest in the company. The stock rallied by about 3% in Tuesday’s trading session, indicating some recovery from the recent decline. Investors are closely monitoring the stock’s performance and evaluating the opportunities it presents in the current market conditions.
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https://markets.businessinsider.com/news/stocks/nvidia-stock-price-sell-off-erases-431-billion-market-value-2024-6
