During a three day sell off US computer chip maker Nvidia has lost around £339 billion and is now no longer the world’s most valuable tech firm.
Last week Nvidia overtook Microsoft on Wall Street as the World’s most valuable stock as the chip maker hit an all time high of £3.3 trillion.
On Monday the US tech giant lost over 6% or £158 billion overnight and the wider Nasdaq composite index fell by 1.1%, however the Dow Jones Industrial Average rose 260 points on Wall Street.
Derren Nathan, at Hargreaves Lansdown said, “To put things in context, (Nvidia) shares have still gained 190% on a 12-month view, so it’s no surprise some investors are locking in some profits, including CEO Jensen Huang who is reported to have sold around 95 million US dollars (£74.9 million) worth of stock in recent days.”
He added that “contrary to recent noise, markets are about more than just one stock”.
Kathleen Brooks, research director at XTB said, “Tech is a multi-year theme, especially artificial intelligence, thus we do not expect Nvidia’s stock price to fall off a cliff but a pullback is to be expected.
“Added to this, it is normal for investors to pause and consider if a stock is looking overvalued, even a stock like Nvidia.”
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