Nvidia’s Stock Drops Nearly 7% in Two Sessions, Loses Top Spot as World’s Most Valuable Company
In a surprising turn of events, Nvidia’s shares have plummeted nearly 7 per cent over the last two sessions, causing the company to lose its position as the world’s most valuable. The semiconductor giant witnessed a sudden decline of 6.7 per cent on Nasdaq, erasing over $220 billion from its market capitalization.
Just last Friday, Nvidia’s market cap stood at $3.1 trillion, placing it below Microsoft Corp. and Apple Inc. This drop comes after a period of rapid growth for Nvidia, with its shares soaring 194 per cent over the last year, driven by investors’ strong interest in artificial intelligence (AI).
While Nvidia has been a dominant player in the AI industry, some experts are warning of a potential bubble in AI stocks. Bimal A. Choksi, founder and CIO of Turtle Star Portfolio Managers, highlighted concerns about the disconnect between industry spending on Nvidia’s chips for AI training and the revenue generated.
Despite the recent setback, many experts believe that Nvidia’s fundamentals remain intact and that the stock may rebound from its current levels. Manish Chowdhury, Head of Research at StoxBox, emphasized Nvidia’s strong performance in various applications and its potential for growth in the market.
While the stock may face intermittent profit booking, it is expected to continue its bullish run in the near future. Manoj Dalmia, CEO of Proficient Equities, expressed confidence in Nvidia’s role in powering AI advancements and its strong market demand.
Looking ahead, analysts like Vinod Jhaveri believe that Nvidia’s stock price may continue its strong performance for the rest of 2024 and could surpass the $150 mark. With the increasing competition in the AI sector, Nvidia will need to stay innovative and adapt to maintain its market dominance.
As investors navigate the volatile market, it is essential to consult certified experts before making any investment decisions. The future of Nvidia and its stock price will be closely watched as the company navigates the evolving landscape of technology and AI.
