Nvidia’s stock surged by 7%, recovering from a $430 billion market decline. On Tuesday, Nvidia’s shares climbed almost 7%, marking a rebound after three successive days of losses erased $430 billion in market value. The shares closed 6.8% higher at $126.09 each on June 25, following a 13% decrease from the June 18 closing price of $135.58. This downturn occurred after Nvidia’s stock rallied after a 10-for-1 stock split effective June 10.
Last week, Nvidia momentarily held the position of the world’s most valuable company, overtaking Microsoft’s market capitalization. The company has positioned itself as the dominant provider of chips to support artificial intelligence applications and has made it emblematic of this year’s tech-driven boom in US stocks.
Nvidia’s stock price has surged by 154% this year, contributing nearly 30% to the S&P 500’s year-to-date return, according to data from S&P Dow Jones Indices, as reported by Reuters. The index itself has experienced a 14.6% increase over the same period.
Analysts suggest that the recent decline in Nvidia’s stock has mitigated some concerns about the company’s valuation. The market capitalization of Nvidia has decreased to around $3.1 trillion, down from its peak of roughly $3.3 trillion earlier this month.
Regarding options trading, there has been a notable trend: Nvidia call options have exceeded put options by a ratio of 1.4-to-1 over the last three trading sessions, based on Trade Alert data reported by Reuters. This is a shift from the previous 10 sessions, where the call-to-put ratio was 1.6-to-1. This change reflects a nuanced shift in investor sentiment and their outlook on Nvidia’s prospects.