Nvidia drops 13% in three days after becoming most valuable company | Wilnesh News

Since briefly becoming the world’s most valuable company last week, Nvidia It has fallen for three consecutive trading days and is currently down 13% from its peak.

Monday’s drop was the chipmaker’s second-largest decline this year, with shares down 6.7% to $118.11. Nvidia’s decline brings with it a decline for chipmakers and other technology companies tied to the artificial intelligence boom.

super microcomputerShares of companies that sell servers equipped with Nvidia artificial intelligence chips fell 8.7%. DellCompanies competing in this market fell 5.2%.

chip designer arm Down 5.8%, semiconductor giant Qualcomm and Broadcom Decreased 5.5% and 3.7% respectively.

Many of these companies have been among the biggest gainers of the past few years as investors bet heavily that they will be major beneficiaries of a wave of artificial intelligence spending.

Even after three days of tumbling, Nvidia’s market value has nearly tripled over the past year. Already reached the summit last week apple and Microsoft Before giving up some gains, it was the most valuable U.S. company with a market capitalization of more than $3 trillion. Nvidia was the fourth-biggest loser in the S&P 500 on Monday. Super Micro is still up nearly 200% in 2024.

After a hot few months, investors may be taking the opportunity to lock in gains.

“I don’t think the party is over, but it’s well underway and there are a lot of other areas in tech that offer more attractive risk/rewards,” Hightower’s Stephanie Link told CNBC on Friday.

Nvidia said demand for its prized artificial intelligence graphics processing units (GPUs) remains high as companies including Microsoft, Google, Amazon, Oracle and Meta buy billions of dollars worth of chips to power their data centers and clouds Provide motivation.

Later this year, Nvidia will begin shipping a next-generation artificial intelligence chip called Blackwell, which some analysts say could kick off another cycle that could bring significant growth to the chipmaker and its partners.

Constellation Research founder Ray Wang said on CNBC’s Squawk Box on Monday that Nvidia’s performance “will continue over the next 18-24 months.” “I think now is a good time to buy the dip.”

watch: Nvidia will continue to adjust, but investors should hang in there