Santa Clara, California – Nvidia’s stock rose by over 2% in pre-market trading on Wednesday, bouncing back from a recent three-day slide that wiped out approximately $430 billion from the AI chip giant’s market capitalization. The rebound followed a surge of more than 6% on Tuesday, closing at $126.09 per share after a decline of nearly 13% in the previous three sessions as investors shifted away from the popular AI stock of the year.
A week ago, Nvidia briefly surpassed Microsoft as the most valuable company in the world, setting a record-high close. However, the chip heavyweight lost that title as the recent sell-off began. Kenny Polcari, managing partner at Kace Capital Advisors, expressed confidence in Nvidia’s resilience despite the market fluctuations, suggesting that the current weakness could present an opportunity for investors, especially amid end-of-quarter rebalancing efforts by asset managers. Polcari also speculated that the stock could potentially experience a further decline of 5% to 8%.
Even with Nvidia’s recent market cap climb back near the $3 trillion mark, the company still falls short of the valuations held by competitors like Microsoft and Apple. Nvidia played a crucial role in driving the S&P 500 and Nasdaq to repeated record highs throughout 2024. The Santa Clara-based company recently completed a 10-for-1 stock split on June 10, marking a significant milestone in its financial history.
Overall, Nvidia’s recent performance underscores the volatility and strategic shifts in the market, highlighting the importance of monitoring key industry players like Nvidia for potential investment opportunities. As the company navigates these fluctuations, investors remain attentive to the broader implications for the tech sector and the overall market landscape.