Nvidia
stock was down Tuesday, looking ready to take pause from its meteoric rise.
On Monday, the artificial-intelligence chip maker surpassed
Saudi Aramco
to become the third most valuable company in the world, behind
Microsoft
and
Apple.
In early trading, shares were down 1%—at $843.50. On Monday, the stock closed up 3.6%—at $852.37, putting the company’s value at $2.13 trillion.
The company’s rally has been historic: It jumped from a valuation of $1 trillion to $2 trillion in 180 trading days—faster than
Apple
and
Microsoft.
Given Nvidia’s march higher, it raises questions over whether it is overvalued, or even in a bubble.
J.P. Morgan’s
global markets strategy team asked its clients that very question. How they answered: 51%, moderately overvalued; 28%, in a bubble; 5%, undervalued; and 16%, fairly valued at current levels.
Other chip makers traded lower Tuesday.
Advanced Micro Devices
fell 1.8%,
Intel
was down 4.1%, and
Micron Technology
dipped 1.2%.
Nvidia shares have risen 72% this year through Monday’s close. That compares with a 7.6% increase in the
S&P 500
index and an 8% rise in the
Nasdaq Composite
over the same period.
Write to Callum Keown at [email protected]
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