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Nvidia’s shares were up over 5% during mid-day trading on Tuesday, after slipping Monday, putting it back behind Microsoft and Apple, which it had briefly passed to become the most valuable company in the world.
The chipmaker’s shares fell 6.7% Monday to around $118, and dragged down the Nasdaq. At its peak on June 20, Nvidia stock hit $140.76, putting its market cap at nearly $3.5 trillion. At market close on Monday, its market cap sank to $2.9 trillion, putting it just behind Microsoft’s $3.3 trillion and Apple’s $3.2 trillion.
The company lost over $500 billion in market value over three trading days, sending shares of chip firms in Europe and Asia down in early trading Tuesday, before some eventually rebounded, CNBC reported. Dutch chip equipment manufacturer, ASML, was up 0.18% at the European close, while Swiss semiconductor manufacturer STMicroelectronics was down 1.4% at the market close in Europe. In Asia, South Korean tech giant Samsung was down 0.3% at the close, while chipmaker Taiwan Semiconductor Manufacturing Company was up 0.5%.
Nvidia’s stock rally has been so impressive that it’s had investors wondering if it’s a bubble that will burst if AI hype subsides. Nvidia shares have risen more than 190% over the past year, and 30% over the last three months alone. CEO Jensen Huang is cashing in on the company’s gains, reportedly selling shares worth a total of about $95 million between June 13 and June 21.
The slight decline Monday is an indication that Nvidia’s seemingly-unlimited rally might have hit a peak. But such signals have proven false before. Nvidia’s share price fell before its fourth quarter earnings report in February, as investors grew skeptical that the company could meet Wall Street’s growing expectations. And of course, Nvidia proved its doubters very wrong, and its stock skyrocketed. Nvidia’s stock price also dipped after a big rally following its record-high first quarter earnings in May. But just after the stock seemingly fell back to Earth, it began climbing to new heights — again.