By Nvidia’s stock experienced a slight dip on Tuesday after its remarkable ascent in the market. The AI chip maker recently surpassed Saudi Aramco to claim the title of the third most valuable company globally, trailing behind Microsoft and Apple.
Stock Performance
- Nvidia shares were down by 1.1% in premarket trading, closing at $838.06.
- The stock had a 3.6% increase, closing at $852.37 on Monday, with the company’s total value reaching $2.13 trillion.
Historic Rally
Nvidia’s rapid growth has been noteworthy, transitioning from a $1 trillion to a $2 trillion valuation within 180 trading days—surpassing both Apple and Microsoft in speed. However, with this surge, concerns arise regarding the stock being overvalued or potentially in a market bubble.
Client Sentiment
Analysis from J.P. Morgan’s global markets strategy team revealed varying opinions among clients:
- 51% believed Nvidia was moderately overvalued.
- 28% considered it to be in a bubble.
- Only 5% perceived it as undervalued.
- 16% felt it was fairly valued at its current levels, challenging assumptions of an impending market bubble.
Market Trends
Amid Nvidia’s fluctuation, other chip makers observed a decline in their stock values:
- Advanced Micro Devices saw a decline of 2.5%.
- Intel experienced a 0.7% decrease.
- Micron Technology dipped by 0.1%.
Year-to-Date Comparison
Nvidia’s stock has surged by 72% this year alone, compared to the S&P 500 index’s 7.6% rise and the Nasdaq Composite’s 8% increase during the same period.
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