fbpx

Why Nvidia’s Stock Price Dropped Over 5.50% Explained

Nvidia’s stock price experienced a significant drop of over 5.50% on Friday, leading to a loss of approximately $128 billion for investors. Despite reaching a new high of $974 per share, the stock ended the day at $875.28, marking a 10% decline. Experts attribute this decline to selling pressure in the S&P 500 and Nasdaq indices, influenced by disappointing US job data that quashed expectations of a rate cut by the US Federal Reserve. Additionally, weak quarterly performance from major US auto companies, including Tesla, Broadcom, and Costco, contributed to Nvidia’s stock price fall.

Sandeep Pandey, Founder of Basav Capital, highlighted that Nvidia, a chipmaker heavily reliant on American auto giants like Tesla, faced profit-booking triggered by the weak quarterly results of these companies. Avinash Gorakshkar, Head of Research at Profitmart Securities, emphasized Nvidia’s status as the AI leader in the US stock market and linked the stock’s decline to the disappointing US job data and a rise in unemployment figures, dampening expectations of a Fed rate cut.

ADVERTISEMENT

Regarding the outlook for Nvidia’s stock price, Pandey advised maintaining a strict stop-loss below $810, considering the stock’s strong base in the $810 to $815 range. However, he cautioned potential investors to wait for further developments, as the stock may experience more corrections if US Fed officials adopt a hawkish stance on interest rates.

Despite Friday’s decline, Nvidia has shown robust performance, delivering stellar returns. In the last month, the stock has risen over 20%, while the six-month and year-to-date returns stand at 90% and nearly 80%, respectively. Over the last year, Nvidia’s stock price has surged from $234.36 to $875.28, yielding a remarkable 275% return for investors.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​

ADVERTISEMENT
We will be happy to hear your thoughts

      Leave a reply

      Share Price India News
      Logo