Nvidia stock set to continue rebound after snapping a 3-day rout

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Jun 26, 2024 #3day, #Info, #Nvidia, #rebound, #rout, #Set’, #snapping, #Stock, #‘Continue

Nvidia stock (NVDA) rose over 2% in pre-market trading on Wednesday, after the previous day’s gain reversed a three-day slide that erased roughly $430 billion of the AI chip giant’s market cap.

Shares popped more than 6% on Tuesday to close at $126.09 each after declining nearly 13% in the prior three sessions as investors rotated out of the hottest AI play of the year.

Nvidia hit a record-high close exactly one week ago when it briefly surpassed Microsoft (MSFT) as the most valuable company in the world. The chip heavyweight gave back that title as the three-day sell-off commenced.

“I think it’s way 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, noting the timing of the decline.

“We’re at the end of the quarter, so it’s a quarter-marking period. You’ve got a lot of big asset managers that are trying to reshuffle and rebalance,” he said.

Polcari added he wouldn’t be surprised if the stock slid “another 5% or 8%.”

On Tuesday, Nvidia’s market cap climbed back to hover around the $3 trillion level, though it was still below the valuations of Microsoft or Apple (AAPL).

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