Shares of Nvidia, seen as a major beneficiary of the AI boom among hardware makers, have had a rough week. The company’s capitalization decreased by $406 billion, and in a couple of weeks it collectively decreased by one fifth. Such volatility may scare off conservative investors.
Image source: NVIDIA
Against this background, as Bloomberg ironizes, even investments in Bitcoin can be considered more reliable. Over the past 30 days, Nvidia’s stock price has fluctuated from $90.69 to $131.26 per share, with last Tuesday being the most devastating for the company’s capitalization. The thirty-day volatility level of this issuer’s shares turned out to be twice as high as that of Bitcoin, and also almost four times higher than that of Microsoft shares. The previous two weeks were the worst for Nvidia shares in the last two years.
Investors are currently concerned about the slowdown in the company’s revenue growth and the delay in bringing Blackwell-generation computing accelerators to the market, and market participants are also afraid of the consequences of possible antitrust proceedings in the United States, which Nvidia risks becoming involved in. Other chipmakers like Broadcom are also not encouraging investors with their financial forecasts, so problems arise for the semiconductor industry as a whole. Wayve Capital Management experts express concerns that in the current conditions it is difficult to find the level of quotes that would correspond to the local minimum. On the other hand, as they note, few people dare to dispute the prospects of long-term investments in the field of AI, so Nvidia shares at the current lower levels are of interest to patient investors.