Nvidia share price jumps 7%, bounces back after $430 billion market dip
Read here: Nvidia stock rebounds, lifts Nasdaq higherLast week, Nvidia briefly became the world’s most valuable company, surpassing the market value of Microsoft. The company has positioned itself as the dominant provider of chips to support artificial intelligence applications and have made it emblematic of this year’s tech-driven boom in US stocks.Nvidia stock price is up 154% this year and has accounted for nearly 30% of the S&P 500’s year-to-date return as of Monday’s close, according to S&P Dow Jones Indices, Reuters reported.
The index has rallied 14.6% this year.Also Read: Tech investor Sean Parker leads rescue of struggling AI stratupAnalysts believe the recent selloff in Nvidia shares has helped ease some worries about the company’s valuation. Nvidia’s market value has dropped to around $3.1 trillion from a high of about $3.3 trillion earlier this month.Nvidia call options outnumbered puts by 1.4-to-1 over the last three sessions, Reuters reported, quoting Trade Alert data.
That compared to a call-to-put ratio of 1.6-to-1 for the prior 10 sessions.Also Read: Microsoft hit with EU antitrust charges over TeamsNvidia had reported blockbuster first quarter earnings, with profit and revenue soaring amid surging demand for the company’s chips for AI applications. The company’s profits and revenues jumped by 628% and 268% respectively, compared to the corresponding period in 2023.
Nvidia’s net income surged to $14.88 billion in the first quarter, which ended April 28, and it is up more than sevenfold from $2.04 billion a year earlier. Revenue tripled to $26.04 billion from $7.19 billion in the previous year’s quarter.(With inputs from Reuters)Read all Stock Market News Updates here Milestone Alert!
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