NVDA: Nvidia Stock Ends Six-Day Winning Streak as Steep Run Stokes Talks of FrothS
Nvidia stock acted more like a penny stock on Friday rather than a $2 trillion tech behemoth which ranks third in the world’s biggest companies list. The chipmaking juggernaut seesawed more than 10% to the downside, erasing over $200 billion from its value in less than an hour to hit a session low of $866 a share. Fortunately for the tech evangelists, the bulls stepped in and bought the dip.
But only halfway. Shares of Nvidia still closed down 5.6% on the day, snapping a six-session winning streak. The drastic pullback stoked talks of a frothy stock in an AI-charged bubble. Nvidia’s formidable rise has propelled shares more than threefold in 2023 and another 80% so far this year. Now the question lingering on everyone’s mind: Is that the start of a pullback or is there more to the breakneck rally?
There’s no doubt that Nvidia’s spectacular run is backed by blowout earnings and profits. Rising demand from AI data centers opens up visibility into future cash flow, emboldening CEO Jensen Huang to cite even more growth with another $24 billion in earnings for the current quarter. Enthusiasm over the stock and the broader AI space may be speculative but it’s nowhere near exhaustion. How share price reacts, however, is a different story and one that does not necessarily obey fundamentals.
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Maniac Fool : The CEO has 3+% NVIDIA stocks on hand only.