Shares of Nvidia (NVDA.O) surged nearly 7% on Tuesday, breaking a three-session slump that had wiped out approximately $430 billion from the AI chipmaker’s market value. Nvidia’s shares closed at $126.09, recovering from a decline of around 13% from their June 18 close of $135.58. This drop followed a rally that intensified after a 10-for-1 stock split on June 10.
“The bounce today is a normal technical rebound after a 15% drop in three days; stocks don’t fall continuously,” said Tom Hayes, chairman of Great Hill Capital in New York. “It’s a great company with a great CEO, and you had insiders selling three-quarters of a billion worth of stock just as retail investors were getting involved with the split,” Hayes added.
Nvidia’s remarkable rise and its role as the leading provider of chips for AI applications have made it a symbol of this year’s tech-driven boom in U.S. stocks. Nvidia shares, which last week briefly made it the world’s most valuable company, are up 154% this year and have contributed nearly 30% to the S&P 500’s (.SPX) year-to-date return as of Monday’s close, according to S&P Dow Jones Indices. The index is up 14.6% this year.
