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Nvidia stock expected to continue rebounding after 3-day rout

Nvidia (NVDA) stock rose more than 2% in premarket trading Wednesday, after the previous day’s gain reversed a three-day decline that erased about $430 billion from the gaming giant’s market capitalization. AI chips.

Shares jumped more than 6% on Tuesday to close at $126.09 each, after falling nearly 13% in the previous three sessions as investors pulled out of the hottest AI play in the year.

Nvidia hit an all-time high exactly a week ago by briefly overtaking Microsoft (MSFT) as the world’s most valuable company. The chip heavyweight surrendered this title as the three-day sale began.

“I think it’s really overblown. I don’t think people should be nervous about what’s happening with Nvidia,” Kenny Polcari, managing partner at Kace Capital Advisors, told Yahoo Finance on Tuesday.

“I would use this weakness as an opportunity,” he added, highlighting the timing of the decline.

“We’re at the end of the quarter, so it’s a defining period of the quarter. There are a lot of large asset managers trying to reorganize and rebalance,” he said.

Polcari added that he wouldn’t be surprised if the stock slipped “another 5 or 8 percent.”

On Tuesday, Nvidia’s market capitalization climbed again to around $3 trillion, although it remains lower than the valuations of Microsoft or Apple (AAPL).

Nvidia played a pivotal role in taking the S&P 500 (^GSPC) and Nasdaq (^IXIC) to repeated record highs in 2024.

Nvidia stock expected to continue rebounding after 3-day routNvidia stock expected to continue rebounding after 3-day rout

Nvidia CEO Jensen Huang delivers a speech during the Computex 2024 trade show in Taipei, Taiwan, June 2, 2024. (AP Photo/Chiang Ying-ying) (ASSOCIATED PRESS)

The Santa Clara, Calif.-based company completed a 10-for-1 stock split on June 10.

Ines Ferre is a senior economics reporter for Yahoo Finance. Follow her on @ines_ferre.

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News Source : finance.yahoo.com
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