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.
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