Nvidia, a prominent chipmaker, recently lost its status as the world’s most valuable company after its shares plummeted by over 6% in the last two trading days. This decline, amounting to a loss of more than $200 billion in market value, pushed Nvidia behind Apple and Microsoft in terms of market capitalization. While analysts attribute this sudden drop to a correction following the stock’s significant one-year surge, they maintain that Nvidia’s fundamentals remain strong.
Despite the recent volatility, Bank of America analysts expect any fluctuations to be short-lived and continue to recommend buying Nvidia stock, holding onto their buy rating, $150 price target, and top-pick designation for the company. Other analysts, such as those at Melius Research, have raised their price target to $160, citing Nvidia’s strong positioning in the enterprise software market and its demonstrated impact in the field of artificial intelligence.
The timing of Nvidia’s decline appears to coincide with broader market movements, including the expiration of options and futures contracts, index rebalancing by S&P Dow Jones Indices, and related ETF adjustments. These events, collectively known as a “triple witch session,” have the potential to induce market turbulence that can impact individual stocks like Nvidia.
In conclusion, while Nvidia may have lost its position as the world’s most valuable company, analysts remain optimistic about its long-term prospects. Despite the recent drop in share price, the company’s strong fundamentals and strategic positioning in key markets suggest that it is well-positioned to rebound from this setback and continue its growth trajectory.
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https://timesofindia.indiatimes.com/technology/tech-news/how-nvidia-dropped-from-the-worlds-no-1-most-valuable-company-to-no-3-behind-microsoft-and-google/amp_articleshow/111211404.cms