On Monday, Nvidia shares dropped 6.70% lower, lengthening their losses for a third consecutive period, offsetting its $430.00 billion market capitalization.
The corporation’s stock declined by 6.68% to $118.11 on June 25. However, it is anticipated to increase by 0.58% to $118.79 per share in the pre-market session.
Last week, it closed with a market valuation of about $3.10 trillion, below Apple’s $3.20 trillion and Microsoft’s $3.30 trillion.
Super Micro Computer, an American information technology firm, reported that its Nvidia chip sales fell to an 8.70% loss. Dell’s chip sales also fell 5.20%.
Previously, the artificial intelligence chipmaker briefly beat Microsoft as the most significant company globally. However, the tech company failed to maintain its rank for long.
Despite the loss, Nvidia is 138.00% higher year-to-date, making it one of the top-performing stocks in the Nasdaq 100 index. Moreover, experts continue to praise the company, emphasizing that the decline is more about sector rotation than anything fundamental.
Jefferies analysts increased their price target to $150.00 a share from $135.00, setting a Buy rating. They also said that Nvidia maintains a high rank in the AI sector.
According to Hightower’s Stephanie Link, the chipmaker’s shares are over-loved, claiming that other technology places offer better rewards.
AI Propelled Nvidia as the Top Ranked Company Globally
The artificial intelligence rally has boosted Nvidia to be marked as the world’s top company. Experts doubt whether its CEO, Jensen Huang, could sustain its growth.
Moreover, tech giants like Alphabet, Amazon.com, and Microsoft have bent expectations for generative AI’s contribution to profits.
Meanwhile, it said the demand for its prized AI graphics processing units (GPUs) remains high. The firms mentioned, including Oracle and Meta, would buy billions of dollars worth of chips to run their data centers and cloud services.
On the other hand, Nvidia will begin delivering its next-gen AI chips, which are called Blackwell. Analysts expect substantial growth for the chipmaker and its partners.
Constellation Research founder Ray Wang claimed that the chipmaker’s performance will continue for the next 18-24 months.
