Nvidia’s stock fell early on Friday, extending losses from the previous day. The chipmaker’s post-split rally seems to be losing momentum, with shares dropping 2.2% in premarket trading to $127.91. The stock had closed down 3.5% on Thursday, causing Nvidia to lose its position as the most valuable company in the world to Microsoft in terms of market value.
Nvidia’s shares had surged by 164% this year as of Thursday’s close, significantly outperforming the S&P 500 and Nasdaq Composite Index, which saw increases of 15% and 18%, respectively, during the same period. Despite concerns surrounding the high valuation of Nvidia’s stock, analysts on Wall Street remain optimistic about the company’s long-term prospects.
Analyst Vivek Arya from BofA Securities noted that the rapid rise in Nvidia’s shares could lead to short-term profit-taking, but any volatility is expected to be temporary. Arya highlighted Nvidia’s strong position in the AI hardware market and its upcoming products like the next-generation Blackwell chips, which are expected to drive further growth in the future.
BofA Securities maintained a $150 price target and a Buy rating on Nvidia’s stock, considering it one of the best picks in the market. Other chip manufacturers, including Advanced Micro Devices and Intel, also experienced slight declines in pre-market trading.
Overall, while Nvidia’s stock faced a dip on Friday, analysts remain positive about its long-term performance and growth prospects. Investors will be keeping a close eye on upcoming product launches and market trends to gauge the future trajectory of the chipmaker’s stock.
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