Nvidia Stock (NVDA) Rebounds with 2% Gain in Pre-Market Trading
After a tumultuous few days that saw Nvidia’s market cap take a hit, the AI chip giant is showing signs of recovery. In pre-market trading on Wednesday, Nvidia stock (NVDA) rose over 2%, following a 6% surge in the previous day’s trading session.
The recent gains come after a three-day slide that wiped out approximately $430 billion of Nvidia’s market value. The stock had declined nearly 13% in the prior three sessions as investors shifted away from the popular AI play.
Just a week ago, Nvidia hit a record-high close, briefly surpassing Microsoft as the most valuable company in the world. However, the recent sell-off saw Nvidia relinquish that title as its market cap dipped.
Despite the recent volatility, Kenny Polcari, managing partner at Kace Capital Advisors, remains optimistic about Nvidia’s future. He believes that the current weakness in the stock presents an opportunity for investors.
“We’re at the end of the quarter, so it’s a quarter-marking period. You’ve got a lot of big asset managers that are trying to reshuffle and rebalance,” Polcari explained.
While Polcari anticipates the possibility of further declines in Nvidia’s stock price, he remains confident in the company’s long-term prospects. On Tuesday, Nvidia’s market cap climbed back to around the $3 trillion level, although it still trails behind Microsoft and Apple in valuation.
Nvidia has been a key driver of the S&P 500 and Nasdaq’s record highs in 2024. The company recently completed a 10-for-1 stock split, further solidifying its position in the market.
As Nvidia continues to navigate the ups and downs of the stock market, investors will be closely watching for any developments that could impact the company’s performance. Stay tuned for the latest updates on Nvidia and other market news.
