Nvidia, known for its AI chips, saw a rapid decline in value following a historic $430 billion loss in market capitalization over just three days. This drop, the largest of its kind, came after surpassing Microsoft and Apple in value. Despite the recent decline, CEO Jensen Huang executed a Plan 10b5-1 trading plan, liquidating nearly $95 million in shares this month. Additionally, the company’s stock split and annual shareholder meeting added more pressure amid widespread market trends.
Experts attribute the decline to profit-taking and peaking spending on AI data centers. Some analysts remain optimistic about Nvidia’s long-term potential, given its dominance in the AI chip market and high-profile clients like Tesla and OpenAI. Musk, a key buyer, has pushed for more H100 chips for his ventures, enthusing the industry with their capabilities.
Although Nvidia’s stock is expected to see a rebound, ongoing challenges in valuing future revenue and cash flow amid rapid improvements in company fundamentals could lead to further volatility. Meeks points out that the stock’s near-term outlook is uncertain, noting that the trend is a critical factor to consider. Amidst these developments, Nvidia’s continued leadership in AI technology remains a key focus for investors and industry analysts alike.
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https://fortune.com/2024/06/25/nvidia-jensen-huang-shares-market-cap-value-shareholder-meeting/
