Chip giant
Nvidia Corp
posted its biggest one-day drop in nine months. Nvidia is the company that is widely regarded as the biggest success story of the rise of Artificial Intelligence indusry. The company's stock has seen 200%-plus jump in the past one year and of this over 70% in the year 2024 itself. With a market value of about $2.2 trillion, Nvidia is the third biggest company in the S&P 500 after Microsoft Corp and
Apple
Inc.
There are speculations that the speed at which Nvidia's market cap is growing it may beat Apple in the next few months.
The Friday Fall
Coming to the big fall on Friday, March 8, the reason for the drop is that traders took profits following a rally that saw the stock gain more than 19% in six consecutive trading days. So, per se no negative news for the investors or the company in general.
Nvidia shares have jumped 70% in 2024
According to a report in Bloomberg, the chipmaker’s shares fell 5.6% on Friday, March 8, the biggest drop since May 31, 2023. In a sign of how far Nvidia has rallied this year, the drop erased about $130 billion in market value, ranking among the biggest single-day value destructions in US stock market history.
Nvidia shares have soared this year amid rising optimism that demand for its chips used in artificial intelligence computing will remain robust. Even after Friday’s decline, the stock is up more than 70% in 2024.
Earlier in the session, Nvidia shares gained as much as 5.1%, pushing a momentum indicator to the highest since November 2021, signaling the stock was ripe for a pullback. The relative-strength index climbed above 85 on Friday, the highest since November 2021, before dropping to around 70.
English (US) ·