Easy come, easy go — the massive chip maker is down 16% from record, meeting the definition of “entering a bear market.”
- Nvidia stock NVDA has crashed 16% from its record high in the span of just three trading sessions. The percentage drop has erased more than $500 billion from the chip maker’s sky-high valuation of $3.4 trillion, or just about enough to briefly place it as the world’s most expensive company. On Tuesday, ahead of the market open, Nvidia’s worth of about $2.9 trillion is sending shockwaves across trading communities.
- The sudden drop, seemingly out of nowhere, came without any warning sign or a reason. Other than maybe traders are taking out profits and reducing the froth in the process. Technology shares witnessed a broad-based selloff on Monday with markets rotating out of mainstays such as Amazon AMZN, down 1.9%, and Microsoft MSFT, lower by 0.5%. With that, markets now wonder what’s coming next?
- Nvidia’s super-fast rise is responsible for about a third of the S&P 500’s increase so far on the year. The chip giant, led by Jensen Huang, has gotten so big it threatens to drag Wall Street’s S&P 500 if a large enough pullback occurred. With all that volatility and rapid swings, analysts are hoping that traders and investors might finally figure out how much Nvidia is worth, after it has soared more than 140% in 2024.