Nvidia Stock Rebounds 6% After $430 Billion Market Cap Loss in 3-Day Slump

Jun 25, 2024, 11:01 AM

Nvidia's stock experienced a significant downturn, entering correction territory after a three-day slump that erased approximately $430 billion from its market cap. The selloff, which saw Nvidia's shares drop by 13%, raised concerns about the broader tech market, with the company's market value falling below $3 trillion. Despite the sharp decline, Nvidia's stock rebounded strongly, gaining over 6% on Tuesday and leading a tech sector recovery. Short sellers profited significantly from the downturn, with gains of around $5 billion. Nvidia's market cap had previously peaked, briefly surpassing Microsoft as the most valuable company. The company's market cap fell by $500 billion in total, with the stock dropping 16% from its peak. Despite the recent volatility, Nvidia is still up 130% year-to-date. The recent volatility has sparked speculation about the sustainability of the AI-driven market rally.