NVIDIA Corp’s brief reign as the world’s most valuable company was short-lived, with shares falling 6.7% in two days and wiping out over $220 billion in market capitalization. This drop pushed Nvidia out of the top spot, with Apple Inc. and Microsoft Corp. now holding higher market capitalizations. The sudden reversal followed a rapid rise earlier in the week when Nvidia surpassed its competitors.
Traders noted that there wasn’t a specific fundamental reason for the sell-off, attributing it to typical market fluctuations that can quickly impact large companies like Nvidia. Despite the decline, analysts like Vivek Arya from Bank of America remained positive about the stock’s prospects in the long term, expecting any volatility to be short-lived. Other analysts, such as Ben Reitzes from Melius Research, increased their price target for Nvidia, emphasizing the company’s strong position compared to other software-as-a-service firms.
The market turbulence also coincided with broader market movements as options expired and weightings in indices were shuffled. This alignment of events could contribute to increased volatility in individual stocks like Nvidia.
Overall, Nvidia’s recent stock performance underscores the challenges of sustaining rapid growth in a volatile market environment. Despite the recent setbacks, many analysts and investors remain optimistic about Nvidia’s long-term potential and believe that the company is well-positioned to capitalize on opportunities in the artificial intelligence and enterprise application software markets.
Article Source
https://fortune.com/2024/06/21/nvidia-market-cap-world-most-valuable-company-nvda-stock-selloff/
