Nvidia shares saw a significant increase of over 5% in midday trading on Tuesday, following a slight drop on Monday that caused the company to fall behind Microsoft and Apple in terms of market capitalization. The chipmaker experienced a 6.7% decrease in shares on Monday, leading to a decrease in market capitalization from $3.5 trillion to $2.9 trillion. This resulted in Nvidia losing over $500 billion in market value over three days of trading, impacting chip companies in Europe and Asia as well.
Despite this setback, Nvidia’s stock has been on a remarkable rally, with shares increasing more than 190% over the past year and 30% in the last three months. CEO Jensen Huang recently sold shares worth around $95 million, leading to further speculation about the company’s future performance. The recent decline in Nvidia’s stock price on Monday may suggest that the company’s rally could be reaching its peak, raising concerns among investors about a potential bubble that could burst.
However, past instances where Nvidia’s stock price fell ahead of key reports like the fourth-quarter earnings in February and record first-quarter earnings in May have been proven false, with the stock rebounding to new heights following initial declines. The fluctuating nature of Nvidia’s stock price has left investors wondering about the sustainability of the company’s growth, particularly as enthusiasm for AI technology fluctuates. As the chip industry continues to experience shifts in market dynamics, Nvidia’s performance remains closely monitored by investors looking for signs of continued growth or potential risks in the future.
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https://qz.com/nvidia-stock-rebounds-lose-500-billion-market-value-1851559778