Jun 21, 2024 - Economy
Charted: It's tough at the top
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After Nvidia hit a $3.3 trillion valuation this week — briefly taking the crown as the world's most valuable company — its stock has fallen 9.6%.
- In market cap terms, that's equivalent to shedding the entire market cap of General Motors... four times.
Between the lines: There's been no bad news around Nvidia to spark the drop.
- It could be thanks in part to profit taking.
- And it could be some portfolio rebalancing. Seligman Investments' Paul Wick told Bloomberg that they're trimming some NVDA simply because at this valuation, the company's concentrated revenue base presents just a bit more risk than megacap peers like Microsoft and Google.
