Nvidia's stock sees significant dip after briefly overtaking Apple, Microsoft

Nvidia, which briefly became the world’s most valuable company last week, has seen its stock drop for three consecutive trading days, falling 13 per cent from its peak. On Monday, Nvidia experienced its second-largest drop of the year, with the stock falling 6.7 per cent to $118.11.

This decline also affected other tech companies associated with the AI boom: Super Micro Computer fell 8.7 per cent, Dell dropped 5.2 per cent, Arm declined by 5.8 per cent, Qualcomm fell 5.5 per cent, and Broadcom fell 3.7 per cent. Many of these companies had seen significant gains in the past couple of years due to heavy investments, with expectations that they would benefit from increased AI spending.

Nvidia’s value had nearly tripled over the past year, even after this three-day slump. Last week, Nvidia surpassed Apple and Microsoft to become the most valuable U.S. company, with a market capitalization exceeding $3 trillion, before relinquishing some of those gains. Investors might be seizing the chance to lock in gains after a strong performance.

Despite the recent decline, Nvidia maintains that demand for its AI graphics processing units (GPUs) remains high.

Later this year, Nvidia plans to release its next-generation AI chips, named Blackwell, which analysts believe could spur another growth cycle for the company and its partners.