Nvidia CEO Jensen Huang spoke at the COMPUTEX forum in Taipei, Taiwan, on June 4, 2024. Following a brief stint as the most valuable company in the world, Nvidia has experienced a three-day decline, dropping 13% from its high. This decrease has had a ripple effect on other chipmakers and technology companies connected to the growth of artificial intelligence.
On Monday, Nvidia saw its second-steepest drop of the year, with shares falling 6.7% to $118.11. This decline also impacted companies like super microcomputer and Dell, both with significant drops in their stock prices. Overall, the decline has affected many companies that have been key players in the AI sector, with each seeing a decrease in their market value.
Despite the recent drop, Nvidia’s value has nearly tripled in the last year. Last week, it briefly surpassed Apple and Microsoft as the most valuable American company, boasting a market capitalization of over $3 trillion. However, Nvidia has since given up some of those gains, becoming the fourth-biggest loser in the S&P 500 on Monday.
Many investors may be looking to secure their profits after Nvidia’s strong performance over the past few months. While Nvidia remains confident in the demand for its AI GPUs, analysts are optimistic about the upcoming release of its new AI chips, Blackwell. This new product has the potential to drive significant growth for Nvidia and its partners in the coming months.
Despite recent fluctuations, experts like Hightower’s Stephanie Link believe that Nvidia stock is still attractive, calling it “much loved.” Ray Wang, founder of Constellation Research, also expressed optimism about Nvidia’s future performance, suggesting that now may be a good time to invest in the company.
In conclusion, Nvidia’s recent dip in stock price has raised concerns among investors and impacted other companies in the tech sector. However, the company’s strong position in the AI market and plans for new product launches signal potential for future growth. Investors and analysts remain optimistic about Nvidia’s long-term prospects despite the current market conditions.
Article Source
https://www.cnbc.com/2024/06/24/nvidia-slides-13percent-in-three-days-after-becoming-most-valuable-company.html
