Jun 25, 2024 - Business
Charted: Nvidia stops the bleeding
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The aura of inevitability surrounding Nvidia's stock ascent took a hit over the last few days.
Why it matters: NVDA's meteoric rise is tied to a broader explosion of interest in the emerging AI economy, raising questions of how high it could go, or if it already got there too fast.
Nvidia stock, which has gained 760% since the start of 2023, is down about $14 from last week's all-time high, when it briefly topped $140.
- It was down even more on Monday — as it entered correction territory — before rebounding today to close up nearly 7%.
The intrigue: The chip designer's recent skid didn't bring about a broader market rout.
- "US stocks are holding up just fine," Nicholas Colas, co-founder of DataTrek Research, wrote today, noting that while Nvidia shares were down 13% since June 18, the rest of Big Tech was down only 1.7% during the same period.
The bottom line: NVDA's decline likely stems from several factors — including a fair amount of profit taking — that may not signal systemic issues.
