Nvidia Stock Plummets 5%, Continues Decline into Correction Zone
Money | June 24, 2024, 12:04 p.m.
Nvidia (NVDA) stock plunged by 5% on Monday as investors shifted away from the AI sector. This marks the third consecutive day of losses for the chip giant, putting the stock in correction territory after it dropped more than 11% from its all-time high. Once briefly the most valuable company, Nvidia has now slipped behind Microsoft and Apple in market capitalization. Despite recent support for the S&P 500 and Nasdaq, concerns over long-term stock performance have emerged. Although some analysts believe any volatility will be short-lived, others warn of potential risks. Jefferies analysts, for example, upgraded their price target for Nvidia to $150, praising its current position as both a "king" and "kingmaker." However, experts caution investors to monitor downstream profitability and potential signs of a sustained pullback. The future of Nvidia's dominance may hinge on software companies like Adobe and Salesforce embracing AI technology.