Shares of Nvidia (NVDA) rose more than 3% on Tuesday morning, reversing a three-day decline that wiped nearly $430 billion off the AI chip giant’s market value.
Shares are down nearly 13% since Thursday as investors exit the stock, which hit a record closing high exactly one week ago when it briefly surpassed Microsoft ( MSFT ) as the world’s most valuable company.
The heavyweight chip reclaimed that title as the three-day sell-off got underway.
“I think it’s very overblown. I don’t think people should be nervous about what’s going on with Nvidia,” Kenny Polcari, managing partner at Kace Capital Advisors, told Yahoo Finance on Tuesday.
He added: “I will exploit this weakness as an opportunity,” referring to the timing of the decline.
“We’re at the end of the quarter, so it’s a quarterly period. You’ve got a lot of big assets trying to reposition and rebalance.”
Polcari added that he wouldn’t be surprised if the stock fell “another 5% or 8%.”
On Tuesday, Nvidia’s market capitalization rose again to hover around the $3 trillion market cap, though it is still below Microsoft’s or Apple’s (AAPL) valuations.
Nvidia played a pivotal role in boosting the S&P 500 (^GSPC) and Nasdaq (^IXIC) to repeated record highs in 2024.
The Santa Clara, California-based company completed its 10-for-1 stock split on June 10.
Ince Ferry is Yahoo Finance’s chief business correspondent. Follow her on X in @ines_ferre.
Click here for the latest stock market news and in-depth analysis, including stock-moving events
Read the latest financial and business news from Yahoo Finance.
“Typical beer advocate. Future teen idol. Unapologetic tv practitioner. Music trailblazer.”
More Stories
Order your Chipotle in person to get more bang for your buck, Wells Fargo analysis suggests
A Southwest plane took off from a closed runway, forcing workers to evacuate the runway.
Stocks rise as key inflation data monitored by the Federal Reserve continues to slow