Nvidia stocks plummet by 13% in three days: What’s going on?

Nvidia: A Three-Day Plunge

Nvidia continues to attract maximum attention among investors, but this time for a three-day sell-off.
The stock dropped by 6.7% overnight, marking the third consecutive negative session and the biggest one-day percentage drop since April.
The three-day plunge wiped out about $430 billion from Nvidia’s market capitalization, the largest value loss over three days for any company in history.

Impacts on Tech Industry

Nvidia’s decline has led to a drop in chip manufacturers and other tech companies linked to the artificial intelligence boom.
The semiconductor giant for AI development had just recently claimed the historic top spot as the world’s most valuable company by market capitalization.

Market Analysis

Traders are seeking answers to this sudden downturn in Nvidia’s stock in technical analysis, rather than future-related reasons for the promising company.
However, markets are wondering about the fate of the tech giant that is driving U.S.
stocks and beyond.

What’s Happening with Nvidia Stocks?

Nvidia’s stock has dropped for three consecutive trading days by -13% from its peak.
Despite the three-day slump, the company’s value nearly tripled in the last year.
Last week, it surpassed Apple and Microsoft as the most valuable U.S.
company with a market cap of over $3 trillion before sliding and giving up some of these gains.

Analyst Predictions

Analysts are grappling with this abrupt shift in Nvidia’s stock performance while recognizing the company’s significant growth within the AI revolution.
The stock’s rally has raised concerns about its valuation, trading at 21 times estimated sales in the next 12 months, making it the priciest in the S&P 500 index by this measure.

Expert Insights

Market experts have differing opinions on Nvidia’s future performance.
Some believe the stock will continue to perform well in the next 18-24 months, while others caution about potential overvaluation.
The recent sell-offs, options expirations, and executive stock sales have contributed to the volatility in Nvidia’s stock.