Nvidia (NVDA) stock rose more than 2% in premarket trading on Wednesday, after the previous day’s gains reversed a three-day decline that wiped nearly $430 billion off the AI chip giant’s market value.
Shares rose more than 6% on Tuesday to close at $126.09 a share after falling nearly 13% in the previous three sessions as investors exited the year’s hottest AI games.
Nvidia hit a record closing high exactly one week ago when it briefly surpassed Microsoft ( MSFT ) as the world’s most valuable company. The heavyweight chip reclaimed that title as the three-day sell-off got underway.
“I think it’s overblown,” Kenny Polcari, managing partner at Kace Capital Advisors, told Yahoo Finance on Tuesday. “I don’t think people should be nervous about what’s happening with Nvidia.”
He added: “I will exploit this weakness as an opportunity,” referring to the timing of the decline.
“We’re at the end of the quarter, so it’s a quarterly period. There are a lot of big asset managers trying to reshuffle and rebalance.”
Polcari added that he wouldn’t be surprised if the stock fell “another 5% or 8%.”
On Tuesday, Nvidia’s market capitalization rose again to hover around the $3 trillion level, although it is still below the valuations of Microsoft or Apple (AAPL).
Nvidia played a pivotal role in supporting the S&P 500 (^GSPC) and Nasdaq (^IXIC) to repeated record highs in 2024.
The Santa Clara, California-based company completed its 10-for-1 stock split on June 10.
Ince Ferry is Yahoo Finance’s chief business correspondent. Follow her on X in @ines_ferre.
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