On Sunday, the third-largest company by marketcap went from down 6% to up 3%, then back down 2% in a five-hour span. All this, on a day when the markets are not even open.
A series of movements, however unusual, mark the price of one of the most important stocks of the moment. This is the role of Nvidia, which on Friday reached its peak of US$974 per share, and then fell to US$865, reflecting a drop of 11.2% and a loss of US$260 billion in market capitalization.
Thus, this Monday, before the market opens, Nvidia shares lose about 2% (-1.7%) and extend last Friday’s red. However, it must be said that the papers of the microchip company note a increase of 25.7% in the last month and almost 100% so far this year (92.1%).
On Sunday, the third largest company by marketcap went from being down 6% to up 3%, and then fell again by 2% in a period of five hours. All this, on a day when the markets are not even open; Even with markets closed, some 24-hour brokerage platforms recorded massive swings in Nvidia.
This represents a swing of more than $300 billion in market capitalization on a Sunday night. If we include the reversal from Friday’s high, that represents an 18% drop in less than 2 trading days, making $NVDA the most volatile stock, outperforming most meme stocks and cryptocurrencies.
A one-of-a-kind action
The famous protagonist of artificial intelligence on the Nasdaq list in 2024 recorded strong selling during Friday’s session on Wall Street and closed at $875.28 per share. However, Nvidia shares failed to sustain higher levels after the profit-taking trigger, which was further deepened by selling pressure on the S&P 500 and Nasdaq indices.
Speaking about the reasons that triggered the selling pressure on Nvidia shares, Sandeep Pandey, founder of Basav Capital and quoted by the US press, said: “Nvidia is a chip manufacturing company that gets a good amount of business from major American automakers like Tesla, Costco and Broadcom. All three companies delivered weak quarterly numbers and all of these automakers suffered heavy selling pressure on Friday. “This triggered profit-taking in Nvidia’s stock price at record levels.”
Speaking on the outlook for Nvidia’s share price, Sandeep Pandey of Profitmart Securities said, “Nvidia’s share price has established a solid base in the range of $810 to $815 per share. Those holding shares of Nvidia are advised to Nvidia in its portfolios that maintain a strict stop loss below the $810 level.”
As for whether it is an opportunity to fish for the bottom, Basav Capital’s Sandeep Pandey advised new investors to wait as stocks may correct further if US Federal Reserve officials talk aggressively about Interest rates.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
