NVIDIA'S AI ROLLERCOASTER:
$430 BILLION WIPED OUT IN SHOCKING STOCK PLUNGE
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Nvidia’s Market Cap Plunge
Nvidia's market value dropped by $430 billion, losing its spot as the world's most valuable listed company
Ranking Shift
Nvidia, now valued at $2.91 trillion, has fallen to third place globally behind Microsoft ($3.33 trillion) and Apple ($3.19 trillion).
Stock Decline
Nvidia shares fell 6.7% on Monday, marking a three-day losing streak amid cooling investor enthusiasm for AI
Rebound Attempt
Despite the decline, Nvidia's shares climbed more than 5% higher on Tuesday, reversing the multi-day sell-off
AI Overexuberance
Deutsche Bank's Jim Reid noted signs of overexuberance in the US market, despite the belief in AI's potential
Volatility Expected
Analyst Jochen Stanzl highlighted typical volatility for Nvidia, attributing recent declines to profit-taking after rapid gains.
Magnificent Seven
Nvidia is part of the "Magnificent Seven," tech giants that significantly outperformed the broader US stock market.
Market Concentration
The dominance of the Magnificent Seven has led to near-record concentration in the US stock market.
Broader Market Impact
Nvidia's decline held down broader US equity returns, with the S&P 500 and Nasdaq also dipping on Monday.
Sector Resilience
Other sectors, including energy, financials, and utilities, saw gains, indicating investor confidence in the broader economy.
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