Nvidia stock experienced a notable rebound on Tuesday following a series of declines that led to the US chipmaker losing its position as the world's most valuable public company. After three consecutive days of losses, Nvidia closed nearly 7% higher, sparking optimism among investors.
Concerns had arisen amidst the recent sell-off that the company's pivotal role in the artificial intelligence revolution might be losing its luster. Jim Reid, a research strategist at Deutsche Bank, highlighted signs of over-exuberance in the US market, cautioning about the potential impact on Nvidia's performance.
On June 18, Nvidia briefly claimed the title of the world's most valuable company with a market capitalization of $3.34 trillion, surpassing Microsoft. However, a swift downturn over the next three trading days saw the company shedding $430 billion in market value.
Despite the positive momentum in Nvidia's shares on Tuesday, the company's market cap now stands at $3.10 trillion, placing it behind Microsoft and Apple, with market caps of $3.35 trillion and $3.21 trillion, respectively.
Jochen Stanzl, chief market analyst at trading platform CMC Markets, attributed Nvidia's recent volatility to the rapid ascent of its stock price. Since the beginning of the year, Nvidia's stock has surged by over 161%, driven by the company's chips powering AI systems, including generative AI technology like OpenAI's ChatGPT.
