Nvidia share price Takes A deep Dive Losing $430 Billion off its value
Nvidia, the company behind the AI chip boom, has experienced a significant downturn in its stock value. Over the past three days, approximately $430 billion has been wiped out from Nvidia’s market capitalization, marking the biggest three-day value loss for any company in history. This rapid decline comes after a period of remarkable growth, during which Nvidia briefly surpassed Microsoft and Apple in value.
Tesla Comparison:
To put this into perspective, the entire value of Tesla’s shares—approximately half a trillion dollars has evaporated during this period.
Retail Investors and Bitcoin:
The sudden slump in Bitcoin, an asset highly correlated with retail investors, may be influencing Nvidia’s stock price. Retail traders often react to market trends, impacting tech stocks like Nvidia.
CEO’s Actions:
Unfortunately, Nvidia’s founder and CEO, Jensen Huang, inadvertently added to the pressure by selling 720,000 shares (worth nearly $95 million) this month. His timing coincided with the annual shareholder meeting. And followed a 10-for-1 stock split that made the company more accessible to retail investors.
Long-Term Outlook:
Despite the recent plunge, experts emphasize that Nvidia’s bleeding-edge chips. Also designed for data centers and generative AI models like GPT-4, still have a promising future.
NVIDIA provides graphics, compute, and networking solutions globally. The Graphics segment includes GeForce GPUs for gaming, while the Compute & Networking segment focuses on data center computing platforms and networking solutions.
Previous Analysis
- First Quarter Fiscal 2025 (Q1 2025):
- NVIDIA reported record quarterly revenue of $26.0 billion, which is an 18% increase from the previous quarter and a remarkable 262% surge compared to the same period last year. The Data Center segment also achieved record revenue of $22.6 billion, up 23% from Q4 and a staggering 427% year-over-year growth.
- Additionally, NVIDIA implemented a ten-for-one forward stock split effective June 7, 2024. And raised its quarterly cash dividend by 150% to $0.01 per share on a post-split basis.
- Historical Stock Price Performance:
- Over the past 12 months, NVIDIA’s stock has seen impressive growth, with a total return of 194.14%, outperforming the S&P 500’s 26.46% return during the same period.
- Looking further back, NVIDIA’s 5-year total return stands at a remarkable 3,467.96%, reflecting substantial price appreciation and reinvested dividends.
- The all-time high closing price for NVIDIA stock was $135.58 on June 18, 2024.
