Nvidia briefly became the world’s most valuable company with a market cap of over $3 trillion, surpassing Microsoft and Apple, but saw its stock drop sharply, losing over $500 billion in three days.
Nvidia recently surpassed Apple and Microsoft to become the most valuable company in the world, surpassing the $3 trillion market capitalization threshold. Nevertheless, the company’s stock has experienced a substantial decline in the past few days, resulting in a loss of over $500 billion in just three days.
Microsoft and Apple presently have a market capitalization of $3.327 trillion and $3.191 trillion, respectively, surpassing Nvidia, according to data from companies’ market cap. Consequently, they are two of the most valuable companies in the world. Conversely, Nvidia’s market capitalization is currently $2.905 trillion.
NVDA has demonstrated exceptional performance over the past few months, as indicated by the chart provided by TradingView. The stock has experienced a significant increase in value since its lows of $10 in October 2022, and it has now reached an all-time high above $140. This has resulted in millions of dollars in profits for shareholders and employees who have stock options.
The company’s shares have made new highs and are expected to continue to outperform the market in the near future due to its dominance in the GPU sector and its investment in artificial intelligence (AI).
Nevertheless, the stock price of NVDA shares has experienced a significant decline from its all-time high of $140 in the past few days as investors have taken advantage of the gains they have achieved in recent months.
The stock’s daily candle concluded at $118 on Monday, indicating an 18% decrease in price over the course of three consecutive bearish candles.
The price action of Nvidia is still under the influence of bulls, as indicated by the relative strength index (RSI) on the TradingView chart. The RSI was in the overbought region for the majority of June.. Investors typically capitalize on their profits following excessive RSI levels, which is why this correction was anticipated.
The RSI remains above 50, but the gradient indicates that there is a potential for Nvidia stock to enter the bearish region. This would indicate that the sellers would exert control over the market.
Constellation Research believes that the Nvidia stock rally is not yet complete, and the price will surpass $200 per share within the next year. R “Ray” Wang, the founder of Constellation, is of the opinion that Nvidia’s stock price will be significantly influenced by its dominance in the GPU sector, which has contributed to the AI growth, as per a report from Business Insider.
Wang compared Nvidia’s performance to that of the PC era, during which “Microsoft, Intel, and Cisco served as a triumvirate foundational players.” He is of the opinion that “this new era will have new players all tied back to Nvidia,” and he believes that the company’s CEO, Jensen Huang, is a visionary.
“It’s a visionary-led CEO, and that’s very very important as you’ve seen in the valley. Those are the ones that have led, like the Larry Ellisons of the world, the scott Mcnealys, the Mark Zuckerbergs,”
Wang said.
Wang stated that Nvidia’s competitors are “24 months behind” and that the California-based company has additional products in the works. Wang further stated that the public has only been privy to a small portion of the organization’s roadmap.
