After briefly earning the title of biggest company in the world, Nvidia (NVDA) stock fell for three straight days. It had surpassed Apple (AAPL) and Microsoft (MSFT). Sentiment, unfortunately, shifted briskly.
Before earning the title, people likely did not know that Nvidia produced desktop PC GPUs. It expanded its provides by selling GPUs that power ChatGPT through parallel processing.
Investors started rotating out of AI-related stocks last week. Some of the weakest-performing stocks on the S&P 500 (SPY) bounced back ahead of Nvidia’s decline. FMC Corp. (FMC), for example, added 4.29% in the last week.
Investors who bought Nvidia several years ago have lots of options. They may sell options to profit from the volatility, sell some shares to lock in profits, or ride out the selling pressure. Speculators who bought the stock at $140.76 lost around $22 a share so far. The stock may not hold the 69 times price-to-earnings ratio. If selling continues, it will result in bigger paper losses.
In news unrelated to Nvidia, the cryptocurrency market saw Bitcoin lose 7.8%. Crypto mining once tied the price of BTC-USD to NVDA stock. Today, the fall below $60,000 (at $59,215), is due to Mt. Gox beginning its repayment of stolen assets from clients in a July 2014 hack. It will pay victims in Bitcoin and Bitcoin cash. When hackers attacked the exchange in 2014, Mt. Gox lost 740,000 bitcoins.
