Nvidia Stock Recovers Slightly, Reclaims $3 Trillion Market Cap After Recent Slide

Nvidia’s stock experienced a modest recovery on Tuesday, bouncing back from a significant three-day selloff. The company’s shares closed up over 6%, reaching a price of $126.09, after a dip on Monday had brought it down to $118.11. This rebound also allowed Nvidia to regain its position as a company with a market capitalization exceeding $3 trillion, after briefly slipping below that mark on Monday, the first time since June 11.

Despite the recent volatility, Nvidia still has ground to cover before returning to its pre-selloff price of $135.58, which had briefly made it the world’s most valuable public company, surpassing Microsoft and Apple. Currently, Nvidia’s market cap trails behind Apple’s $3.2 trillion and Microsoft’s $3.3 trillion, with the latter two companies experiencing marginal gains in their share prices on Tuesday.

The recent decline in Nvidia’s stock price lacks a clear catalyst, although it occurred following a remarkable year-to-date rally. Nevertheless, Nvidia shares have surged by more than 150% since the beginning of the year, when they were trading around $48. Prior to a 10-for-1 stock split, the company’s stock had reached $1,210 per share, subsequently adjusting to $120 per share.

Nvidia’s ascent has been fueled by the fervor surrounding artificial intelligence, which has generated substantial demand for the company’s chips and graphics processing units. Tech giants like Microsoft, Meta, and Amazon have been among the prominent purchasers of Nvidia’s products, contributing to its remarkable growth.