Nvidia
CEO
Jensen
Huang
makes
a
speech
at
an
event
at
COMPUTEX
forum
in
Taipei,
Taiwan
June
4,
2024.
Ann
Wang
|
Reuters
Since
briefly
becoming
the
world’s
most
valuable
company
last
week,
Nvidia
has
dropped
for
three
consecutive
trading
days
and
is
now
down
13%
from
its
peak.
Monday’s
slide
was
the
chipmaker’s
second
steepest
drop
of
the
year,
as
the
stock
fell
6.7%
to
$118.11.
Nvidia’s
decline
brought
with
it
a
slide
in
chipmakers
and
other
tech
companies
that
have
been
tied
to
the
artificial
intelligence
boom.
Super
Micro
Computer,
which
sells
servers
packed
with
Nvidia’s
AI
chips,
fell
8.7
percent,
and
Dell,
which
competes
in
that
market,
was
off
5.2%.
Chip
designer
Arm
dropped
5.8%,
while
semiconductor
giants
Qualcomm
and
Broadcom
dropped
5.5%
and
3.7%,
respectively.
Many
of
these
companies
have
been
some
of
the
biggest
gainers
in
the
last
couple
of
years
as
investors
bet
heavily
that
they’ll
be
the
prime
beneficiaries
of
a
wave
of
AI
spending.
Nvidia’s
value
has
nearly
tripled
in
the
past
year
even
after
the
three-day
slump.
Last
week,
it
topped
Apple
and
Microsoft
as
the
most
valuable
U.S.
company
with
a
market
capitalization
over
$3
trillion
before
giving
up
some
of
those
gains.
Nvidia
was
the
fourth-biggest
loser
in
the
S&P
500
on
Monday.
Super
Micro
is
still
up
almost
200%
in
2024.
Investors
may
be
taking
an
opportunity
to
lock
in
gains
after
a
few
hot
months.
“I
don’t
think
the
party
is
over,
but
it’s
had
a
heck
of
a
run
and
there
are
so
many
other
places
in
technology
that
offer
better
attractive
risk/reward,”
Hightower’s
Stephanie
Link
told
CNBC
on
Friday,
calling
Nvidia
shares
“overloved.”
Nvidia
has
said
that
demand
for
its
prized
AI
graphics
processing
units
(GPUs)
remains
high,
as
companies
including
Microsoft,
Google,
Amazon,
Oracle,
and
Meta
buy
billions
of
dollars
worth
of
the
chips
to
power
their
data
centers
and
cloud
services.
Later
this
year,
Nvidia
will
start
shipping
its
next-generation
AI
chips,
called
Blackwell,
that
some
analysts
expect
could
kick
off
another
up
cycle
of
significant
growth
for
the
chipmaker
and
its
partners.
Nvidia’s
performance
“is
going
to
continue
for
the
next
18-24
months,”
Constellation
Research
founder
Ray
Wang
said
on
CNBC’s
Squawk
Box
on
Monday.
“I
think
it’s
a
good
time
to
buy
the
dip.”
watch
now
