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Nvidia Stock Expected to Continue Rebounding After 3-Day Defeat
Nvidia Stock (NVDA) rose more than 2% in premarket trading on Wednesday after the previous day’s gain reversed a three day slide this erased about $430 billion from the AI chip giant’s market value.
Shares rose more than 6% on Tuesday, closing at $126.09 each, after falling nearly 13% in the previous three sessions as investors abandoned the hottest AI play of the year.
Nvidia hit a record close exactly one week ago when briefly surpassed Microsoft (MSFT) as the most valuable company in the world. The chip heavyweight gave that title back as the three-day sell-off began.
“I think it’s way overblown. I don’t think people should be nervous about what’s happening with Nvidia,” Kenny Polcari, managing partner at Kace Capital Advisors, told Yahoo Finance on Tuesday.
“I would use this weakness as an opportunity,” he added, noting the timing of the decline.
“We’re at the end of the quarter, so it’s a quarter marking period. You have a lot of large asset managers trying to reorganize and rebalance,” he said.
Polcari added that he wouldn’t be surprised if shares fell “another 5% or 8%.”
On Tuesday, Nvidia’s market capitalization again hovered around the $3 trillion level, although it was still below the valuations of Microsoft or Apple (AAPL).
Nvidia played a fundamental role to boost the S&P 500 (^GSPC) and Nasdaq (^IXIC) to repeated record highs in 2024.
Nvidia CEO Jensen Huang gives a speech during the Computex 2024 expo in Taipei, Taiwan, June 2, 2024. (AP Photo/Chiang Ying-ying) (ASSOCIATED PRESS)
The company based in Santa Clara, California completed a 10-for-1 stock split on June 10.
Ines Ferre is a senior business reporter at Yahoo Finance. Follow her on X at @ines_ferre.
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