Today, Nvidia (NASDAQ: NVDA) experienced an unexpected drop in its $2 trillion stock value without any direct news. The decline was a result of a broader sell-off in the AI sector triggered by Super Micro Computer (NASDAQ: SMCI) failing to report preliminary revenue, leading to doubts about its future results.
As a consequence, Nvidia plummeted by 10%, while Supermicro saw a significant loss of 23.1% in its stock value.
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Shift in AI Momentum
AI stocks had been on a meteoric rise this year, driven by exceptional growth and enthusiasm for the innovative technology. Nvidia’s stock had nearly doubled year-to-date, reaching a market cap exceeding $2 trillion after a stellar earnings report in February.
However, the recent market downturn highlights that much of the gains were fueled by sentiment and FOMO surrounding the AI industry.
When stocks like Nvidia and Supermicro have already surged by several hundred percent…
2024-04-19 16:09:07
Original from finance.yahoo.com