NEW YORK - Shares of Nvidia were up over 5% on Tuesday, poised to snap a three-session tailspin that had erased about $430 billion from the artificial intelligence chipmaker's market value.
"It's a normal correction for a company that has made a run and gotten a lot of publicity," said Tom Plumb, chief executive and portfolio manager at Plumb Funds, which has Nvidia as one of its largest holdings. "Until there's a confirmation that the actual business would justify the slowing of the momentum, I don't think you've reached the all-time peak.
Bullishness on Nvidia was evident in the options market, though the stock's recent share price slide appears to have made traders more cautious. At the same time, Nvidia short sellers, who bet on declines in the stock, have gained $4.97 billion in the past three sessions combined, according to data analytics from Ortex Technologies.