Nvidia’s shares have surged by over 5% on Tuesday, indicating a robust recovery from a dramatic sell-off that wiped out between $430 billion to $500 billion in market value. The tech giant’s market capitalization now hovers around $2.9 to $3.1 trillion, placing it behind Microsoft and Apple, which maintain market caps of $3.33 trillion and $3.19 trillion respectively. Despite the recent volatility, the company’s stock has still risen over 152% since January, a testament to its influential role in the artificial intelligence revolution and its significant contribution to the S&P 500’s year-to-date return of 14.6%. Analysts attribute the recent decline to signs of over-exuberance in the US market, with some market participants suggesting a shift away from high-growth AI stocks towards other sectors. However, the optimism remains high as Nvidia’s revenue for the fiscal year ending in January 2025 is projected to reach $119.9 billion, signaling confidence in the company’s continued growth and dominance in the AI chip market. Short sellers have capitalized on the stock’s volatility, with Ortex Technologies reporting nearly $5 billion in profits from the sell-off, but the broader market remains relatively stable, with the S&P 500 mostly unchanged and the Nasdaq composite jumping 0.7%. The recent turbulence in Nvidia’s stock, paralleled by fluctuations in Bitcoin’s value, has reminded investors of the inherent risks in the market. Despite the challenges, the company’s strong performance and the high demand for its AI and gaming GPUs suggest that Nvidia’s influence on market indices and investor portfolios will persist.
Key points
- Nvidia’s stock price rebounds by over 5%, recovering from a significant market value loss.
- Analysts remain optimistic with revenue projections of $119.
- Short sellers profit nearly $5 billion from Nvidia’s recent stock fluctuations.
9 billion for Nvidia by January 2025.
Contradictions👾While Nvidia’s market cap is reported to be around $2.
9 to $3.
1 trillion, there is a discrepancy with reports of it falling to $2.
91 trillion and recovering to $3.
10 trillion.
👾Losses reported range from $430 billion to $500 billion, indicating a variance in the reported figures.
