Nvidia Share’s $128B Plunge: A 5.5% Drop Unveiled

Key Points

• Nvidia shares fell by 5.50% on Friday, erasing $128 billion in investor value.
• The stock closed at $875.28 per share, a 10% dip from its lifetime high of $974.
• Factors include disappointing job data in the US, weak quarterly numbers from major companies, and market volatility.
• Despite the fall, Nvidia has seen significant growth, with an approximately 275% return over the past year.
• Experts attribute the volatility to profit-booking and external economic influences.

Nvidia, a titan in the tech industry, faced a sharp decline in share price last Friday, plummeting by 5.50% to close at $875.28 per share. This downturn erased a staggering $128 billion in investor value. Opening at $951.38 and reaching a high of $974, the shares took a nosedive, concluding 10% below their peak. The catalysts for this fall included broader market pressures, particularly in the S&P 500 and Nasdaq indices, along with disappointing job figures from the US and poor quarterly performances from Tesla, Broadcom, and Costco.

Tesla to Broadcom: Factors Behind 5.5% Dip

Sandeep Pandey of Basav Capital attributed Nvidia’s decline to the unsatisfactory quarterly reports from key market players such as Tesla, Costco, and Broadcom. These outcomes influenced their respective stocks and Nvidia’s due to the interconnected nature of today’s market dynamics. Avinash Gorakshkar from Profitmart Securities highlighted another contributing factor: the unfavourable job data from the US. This data intensified concerns over the Federal Reserve’s potential rate cuts, further impacting Nvidia’s price drop.

Nvidia’s 275% Surge Before 10% Fall

Before this setback, Nvidia’s stock was on a remarkable upward trajectory, soaring over 20% in the last month and over 90% in the past six months. Beginning the year at $481.68 per share, Nvidia witnessed an approximate 80% increase by 2024, underscoring its explosive growth. This surge was driven by its status as the third-largest company in the S&P 500, benefiting from technological advancements and market demand.

From 275% Gain to Uncertain Future

The journey of Nvidia’s stock highlights the volatile nature of the tech industry and the stock market. Despite the recent downturn causing concern among investors, the long-term outlook remains positive. Nvidia has shown resilience and growth potential, with a remarkable 275% return over the past year. As the markets adjust and the company continues to innovate, Nvidia may well navigate these turbulent times. Investors and analysts are keenly observing, awaiting Nvidia’s next steps in an ever-evolving financial landscape.