The semiconductor giant’s shares have slumped in consecutive days, down more than 7% after rising earlier this week to bring its market capitalization to $3.3 trillion, just ahead of Microsoft and Apple.
Traders said there was no fundamental reason behind the two-day sell-off, but at the very least it highlighted the stock’s ferocious rise — nearly 200% in the past year alone — and how that rally makes it vulnerable to a sudden drop like this one.
BloombergOf course, given that the three biggest mega-caps have been vying for the top spot all month, it’s possible that Nvidia, which lost more than $200 billion in market cap in two days, could quickly reclaim the top spot.
“There’s nothing wrong with Nvidia, which took the top spot earlier this week,” said Russ Mould, investment director at AJ Bell. “This is a normal fluctuation in the stock market, where large companies like this can lose or gain hundreds of millions or even billions of dollars in market cap.”
The decline also came amid a broader market pullback as options expired in the so-called triple witching session, when investors adjust their positions as options contracts expire, leading to increased trading volume that can shake up individual stock holdings.
