Shares of NVIDIA Corporation (NASDAQ: NVDA) have seen a decline of 3.74%, resulting in a price of $405.90. This drop is believed to be due to profit-taking following a recent surge in AI optimism.
NVIDIA’s Strong Performance Driven by AI Chips
Last month, NVIDIA announced better-than-expected financial results and a promising outlook, mainly driven by the high demand for the company’s AI chips. These chips have been in great demand, particularly for the Microsoft-supported ChatGPT, which gained over 100 million monthly active users in just two months. NVIDIA’s H100 GPUs power large language models like ChatGPT, and their latest innovations have increased the speed of these models by 30X compared to the previous generation.
Despite the recent decline, platforms like ChatGPT and other AI-driven technologies have proven themselves to be powerful force in the market and are expected to remain strong in the future.
NVIDIA Corporation’s Market Performance
On June 26, 2023, Nvidia Corporation (NVDA) opened at $424.61, up from its previous close of $406.37. Throughout the day, the stock’s price ranged between $401.00 and $427.64. A total of 58,903,893 (58.90 million) shares were traded. The market cap of NVDA stood at $1.04 trillion.
In addition, the company has been experiencing steady growth, with earnings growth of 121.61% this year, in contrast to a decline of 55.05% last year. The earnings growth forecast for the next five years is 20.65%.
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
