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Tech stocks, which led the rally in U.S. markets since the beginning of 2023, are looking vulnerable now, especially after earnings for the June quarter were a dampener overall. Nvidia (NVDA), which has yet to release its quarterly earnings, has lost a quarter of its market cap from the 52-week highs, and is in a bear market. It is still the second-best performing S&P 500 Index ($SPX) component of 2024, though - trailing behind who else but fellow artificial intelligence (AI) play Super Micro Computer (SMCI).
Despite the recent crash, Nvidia stock has more than doubled in 2024. The company has been a stellar wealth creator for patient investors, and has generated some mind-boggling returns. Specifically, the stock has risen 99,999% over the last 20 years, even as Intel (INTC) – which was once the pre-eminent chip company – is in the red over the same period.