Hedge fund Coatue Management's founder Philippe Laffont said on Tuesday that he is concerned about how geopolitical conflicts could affect the chip industry and the development of artificial intelligence, including Nvidia.
24/7 Insights Wall Street expectations for where Nvidia Corp.
Global semiconductor stocks saw volatile trading on Tuesday after a slump in shares of Nvidia during the previous session. Switzerland-based semiconductor firm StMicroelectronics' shares were down 1.7%, while ASML, the Dutch chip equipment giant, fell about 0.5%.
Shares of Nvidia Corp NVDA have taken a significant hit, dropping 12.8% in just three trading days.
Nvidia (NASDAQ: NVDA ) stock is on the rise Tuesday after the chipmaker's shares got a new price target from Jefferies analyst Blayne Curtis. The new price target from the Jefferies analyst increases their estimate from $135 per share to $150 per share.
Investors are heading into Nvidia's annual shareholder meeting this week much less bullish. The chip giant has suffered a $431 billion wipeout since Friday, after a rally reminiscent of the dot-com boom.
NVIDIA Corp NVDA recently experienced a stark reminder of the stock market's volatility, losing $500 billion in market value. This highlights the unpredictable swings even the strongest tech giants face today.
The stock market has been on a robust and impressive upward trend this year, with gains reaching nearly 15% year-to-date and close to 25% over the previous year. This strong performance in the SPDR S&P 500 ETF NYSE: SPY has been primarily driven by technological advancements, particularly in Artificial Intelligence (AI) and semiconductors.
Nvidia short sellers have raked in nearly $5 billion in paper profits from the AI chip designer's sharp selloff over the past three sessions, according to data analytics firm Ortex Technologies.
A high interest rate environment and a revolution in AI technology have led to a bifurcated market where specific industries outperform others.
Bitcoin has declined sharply over the past couple of months but it still has a lot of potential. Thus, stocks like NVIDIA Corporation (NVDA), Coinbase Global, Inc. (COIN) and Interactive Brokers Group, Inc. (IBKR) are likely to benefit once it rebounds.
Nvidia stock's nearly 13% drop over three days is a minor decline given its tremendous recent gains. There are key differences between Nvidia stock now and Cisco Systems stock before it plunged in 2000 when the dot-com bubble burst.