Nvidia Corp., the major semiconductor company, recently became the world’s biggest company by market value, surpassing tech giants like Microsoft and Apple. However, this achievement was short-lived.
Earlier this week, Nvidia’s shares surged, pushing its valuation to $3.3 trillion. But in just two days, the stock dropped by more than 7%, causing the company to lose over $200 billion in value.
Traders noted that there wasn’t any major news causing this sharp decline. Instead, it highlighted how quickly Nvidia’s stock had climbed – almost 200% in the past year – making it more susceptible to quick drops like this one.
Despite the setback, Nvidia’s position at the top isn’t necessarily permanent. The company’s market value could bounce back, as it has been competing closely with other mega-companies for the leading position this month.
Russ Mould, investment director at AJ Bell, explained, “Nothing went wrong with Nvidia itself. The drop is just part of normal stock market fluctuations, especially for large companies where changes in stock price can significantly impact their market value.”
The decline also happened during a broader market pullback as options contracts expired in a “triple-witching” session, which can cause significant trading volume and price swings as investors adjust their positions.
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