Nvidia drops from record high, tracking market fall; AI bets support outlook

  • 📰 Reuters
  • ⏱ Reading Time:
  • 48 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 97%

United States News News

United States United States Latest News,United States United States Headlines

Nvidia shares fell from an all-time high on Tuesday, moving in line with the overall market sluggishness, but investors are still optimistic about quarterly results of the chip designer that has been the biggest beneficiary of a boom in artificial intelligence.

last quarter had also sparked a rally in AI-stocks as well as Big Tech, making it one of the key drivers for the U.S. stocks rally this year.

"To keep the stock price where it is, we would want to see bottom line start to support those share gains," said Brian Mulberry, client portfolio manager at Zacks Investment Management, which owns Nvidia shares. At least 19 brokerages have this month raised their target price on Nvidia, pushing the median view to $500, which is a 6.5% increase to the stock's last closing price. Nvidia shares have more than tripled in value so far this year.

Nvidia saw the highest increase in popularity among hedge funds in the second quarter, a report from Goldman Sachs showed on Monday. "Nvidia AI story is what is driving the market right now. If Nvidia were to miss , this market would be in a world of pain," Dick said.Reporting by Medha Singh in Bengaluru; Additional reporting by Amruta Khandekar in Bengalaru and Gertrude Chavez-Dreyfuss in New York; Editing by Anil D'Silva, Arun Koyyur and Lisa Shumaker

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Nvidia earnings will be major test for AI demand, market rally By ReutersNvidia earnings will be major test for AI demand, market rally
Source: Investingcom - 🏆 450. / 53 Read more »

The history of companies with Nvidia-like valuations isn't a good oneNvidia now holds the distinction of having the highest price-to-sales ratio in the S&P 500, a title 99 companies have had since the 1960s. Here's how they...
Source: MarketWatch - 🏆 3. / 97 Read more »