At the end of the last working week, a reversal trend began to form in the dynamics of Nvidia stock prices, as the temporary “sobering up” of investors regarding the future prospects of artificial intelligence technologies gave way to predominantly optimistic expectations for the upcoming quarterly report. Over four sessions, Nvidia’s capitalization was able to grow by $424 billion.
Image source: NVIDIA
During this period, the stock price, as Bloomberg clarifies, managed to increase by 17%, interrupting the decline observed since last month. In the American stock market, the role of Nvidia is now significant, since although the company lost the title of the most valuable in the world, which it received on June 18, over the last four trading sessions, it was the shares of this issuer that accounted for 22% of the growth of the S&P 500 index. All other companies individually can claim at most half of this share, so the dynamics of Nvidia’s share price can influence the overall sentiment of investors in the United States.
Nvidia suffered its worst share price decline in nearly two years in early August, but the company is due to report second-quarter results at the end of the month, and expectations are encouraging many investors, sending its stock price higher. At current levels, Nvidia shares are attractive to buyers who expect them to continue to grow. At the same time, quotes are still 14% below the historical maximum reached on June 18 of this year. However, Nvidia’s quarterly reports will be published only at the end of this month, so the dynamics of the company’s stock price may still change its direction several times.