Nvidia shares recover after losing half a trillion dollars

Nvidia shares rose over 5% in midday trading on Tuesday after Slipping MondayThis puts the company back behind Microsoft and Apple, which it had briefly overtaken to become most valuable company in the world.

The chipmaker’s shares fell 6.7 percent to around $118 on Monday, dragging down the Nasdaq. At its peak on June 20, Nvidia shares reached $140.76, giving it a market capitalization of almost $3.5 trillion. At the close of trading on Monday, the market capitalization fell to $2.9 trillion, just behind Microsoft ($3.3 trillion) and Apple ($3.2 trillion).

The company lost over $500 billion in market value within three trading days. caused share prices of chip companies in Europe and Asia to fall in early trading on Tuesday before some eventually recovered, CNBC reported. Dutch chipmaker ASML rose 0.18% at European close, while Swiss semiconductor maker STMicroelectronics was down 1.4% at European close. In Asia, South Korean tech giant Samsung lost 0.3% at close, while chipmaker Taiwan Semiconductor Manufacturing Company was up 0.5%.

Nvidia’s share price increase was so impressive that investors wondered if it is a bubble that will burst when the AI ​​hype dies down. Nvidia shares have risen more than 190% in the past year, and 30% in the last three months alone. CEO Jensen Huang benefits from the company’s profitsand reportedly sold approximately $95 million worth of shares between June 13 and June 21.

Monday’s slight decline is an indication that Nvidia’s seemingly unlimited rally may have peaked. But such signals have been proven false before. Nvidia’s stock price fell before the release of its fourth-quarter results in February as investors became skeptical about whether the company could meet Wall Street’s growing expectations. And of course, Nvidia proved its doubters wrong and its shares rose sharply. Nvidia’s stock price also fell after a big rally following record first-quarter results in May. But shortly after the stock seemingly came back down to earth, it began to climb new heights again.