Investors experienced a significant dip in technology stocks as companies like Nvidia, Dell, Arm, Qualcomm, and Broadcom saw their shares drop in value. Despite the recent decline, many of these companies have seen substantial gains over the past few years as interest in artificial intelligence technology has grown. Nvidia, in particular, has seen its value nearly triple in the last year, making it the most valuable American company at one point. However, after reaching this milestone, Nvidia’s stock experienced a drop, becoming the fourth-largest loser in the S&P 500 on Monday.
Super Micro, another company in the AI server market, also saw a significant decrease in its stock value. Still, analysts predict that the company will continue to rise in the coming years, potentially increasing by almost 200% by 2024. The recent drop in stock prices may be due to investors wanting to lock in profits after a period of strong performance.
Despite the recent corrections, industry experts remain optimistic about Nvidia’s future performance. The company’s demand for AI GPUs remains high, with major technology companies like Microsoft, Google, Amazon, Oracle, and Meta investing billions in Nvidia’s chips for their data centers. Additionally, Nvidia is set to release its next-generation AI chips, called Blackwell, later this year. Analysts believe that these new chips could lead to further growth for Nvidia and its partners.
Overall, experts like Ray Wang of Constellation Research believe that Nvidia’s positive performance will continue over the next 18 to 24 months, making it a good opportunity for investors to consider buying the dip. While there may still be corrections ahead, many see the current situation as a temporary setback in the larger trend of growth for companies involved in the AI market.
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https://www.cnbc.com/amp/2024/06/24/nvidia-slides-13percent-in-three-days-after-becoming-most-valuable-company.html