NASDAQ stock NVIDIA shares with strong rebound: Market capitalization again above important mark

• NVIDIA shares rebound after several days of losses
• Analysts remain confident
• Market capitalization again above the three trillion US dollar mark

At the end of last week, NVIDIA shares came under heavy pressure on the US NASDAQ stock exchange after their spectacular series of gains. In the three trading sessions from Thursday to Monday, the share lost a total of around 12.9 percent, and in Monday trading alone it fell by around 6.68 percent to 118.11 US dollars. The main reasons given for the chip giant’s price losses were profit-taking – after all, NVIDIA shares have climbed by around 154.6 percent since the start of the year – and worsening sentiment. On Tuesday, however, NVIDIA shares made a strong comeback in US trading.

NVIDIA shares with strong recovery

By the end of NASDAQ trading on Tuesday, NVIDIA shares had risen by 6.76 percent to 126.09 US dollars. The chip profiteer’s share was thus the strongest winner in the NASDAQ 100 tech index and the second-best performer in the broad US S&P 500 index. Only the cruise giant Carnival’s share was able to gain more significantly, with an increase of 8.72 percent, after the company had positively surprised investors with both its balance sheet and its outlook.

At NVIDIA, however, yesterday’s rebound was the strongest in several years. According to MarketWatch, it was the first time since March 2021 that the stock rose 6 percent or more in a trading day after losing 6 percent or more the day before. In after-hours trading on Tuesday, NVIDIA shares rose even further, gaining 0.91 percent to $127.24.

Analysts had previously stressed that the outlook for NVIDIA remained good. According to dpa-AFX, UBS experts wrote that NVIDIA’s drastic three-day sell-off did not reflect worsening prospects for the technology industry or the broader market and that other demand signals were positive. According to MarketWatch, Morgan Stanley analyst Joseph Moore also stressed in a study on Tuesday that NVIDIA’s demand indicators remained robust and that the outlook remained good.

NVIDIA market capitalization again above 3 trillion threshold

Thanks to yesterday’s price increase, NVIDIA’s market capitalization climbed back above the three trillion US dollar mark. The AI ​​winner is now worth 3.1 trillion US dollars on the stock market and has thus been able to reduce the gap to Apple, with a market capitalization of 3.21 trillion US dollars, and Microsoft, with a market capitalization of 3.35 trillion US dollars. Last week, NVIDIA had already temporarily overtaken the two tech companies and became the most valuable listed company in the world, but quickly had to give up this title again.

NVIDIA rebound also pulls other chip stocks up

On Wednesday, shares of some Asian chip manufacturers also benefited from NVIDIA’s recovery in Asian trading. Shares of NVIDIA suppliers SK hynix and Advantest performed particularly well. The shares of SK hynix, which supplies NVIDIA with highly developed memory chips, rose by around 5.8 percent in South Korea, while shares of Advantest, whose semiconductor testers are used in many graphics processors, rose by around 7.1 percent in Japan.

Editorial staff finanzen.net

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