NVIDIA, the largest beneficiary of generative artificial intelligence (AI), has plunged every day since the U.S. announced additional sanctions on semiconductors to China.
On the 25th (local time), Nvidia plunged more than 4%, barely pulling up $1 trillion in market capitalization.
Against this backdrop, some point out that an opportunity to buy Nvidia at a low price is approaching. Investment bank Atau BBA said, “Nvidia has fallen enough,” adding, “The opportunity for low-priced purchases is coming.”
The bank released a report on the same day, saying, “The risk from China has already been almost reflected in the stock price,” adding, “Now, there is only a chance to rise.” He then offered a target price of $600. This means that there is room for a 40% increase from the current price.
On this day, NVIDIA plunged 4.31% from the previous trading day to $417.79.
As a result, the market capitalization reached $1.32 trillion, maintaining only $1 trillion. Nvidia is the first semiconductor company to surpass $1 trillion in market capitalization.
The reason why NVIDIA plunged on this day is that the tech-heavy Nasdaq plunged more than 2% as Alphabet’s stock price plunged 9.6% due to the disappointment of Google’s parent company Alphabet.
The Nasdaq plunged 2.43 percent on the same day. This is a much bigger drop than the Dow 0.32% and the S&P 500 1.43%.
In addition, as the yield on government bonds (market interest rates) soared again, a large number of technology stocks were sold. As a result, Nvidia plunged more than 4%. AMD, the second-largest NVIDIA, as well as NVIDIA, plunged 5.52%.
As their stock prices plunged, the Philadelphia Semiconductor Index, a semiconductor group, also plunged 4.13%.