The US stock market’s new darling Nvidia (NVDA) stock crashed to $105 on Monday and closed the day’s trade at $106. The leading stock is now at the risk of falling below the $100 mark if the downturn continues. Dow Jones plunged 890 points on Monday while Nasdaq Composite fell 727 points. The S&P 500 index dipped 155 points sending shockwaves across the US and global markets.
Also Read: Can Trump Buying A Tesla Car Make TSLA Stock Surge On Tuesday?
The GPU and AI firm Nvidia is among the most sought-after stocks in the market for the fabulous returns it has generated since 2020. It surged nearly 1,700% in the last five years and investors made the most out of the bull run. NVDA is now facing severe corrections as the market turns volatile due to disruption in trade and other macroeconomic factors.
NVDA: Best Strategy to Accumulate Nvidia Stock
Also Read: Solana’s 93% Revenue Collapse: Weekly Earnings Plunge from $55 Million to $4 Million
The best strategy to buy NVDA stock during the market crash is to avoid going all-in on the chip giant. “Don’t go all-on on Nvidia stock,” said Trivariate Research’s Adam Parker to Barrons. The strategist advises traders to invest in a basket of companies that are working towards developing AI. Parker explained that investing in the top AI companies and not just Nvidia could deliver the best results to traders.
“Investors must increasingly consider risk management when it comes to stocks with exposure to the important growth themes,” he wrote. “Investing in stocks with the best attributes in each theme makes more sense than just overweighting the best company in any one theme.” The risk management between AI stocks apart from accumulating Nvidia is the best key to gaining wealth.
The race to capture the AI market is not yet over as the technology is in the making. Tech giants like Microsoft, Google’s Alphabet, and Amazon, among others, are fighting for the top stop. Buying all of these in the portfolio, and not just Nvidia stock can bring in the moolah.
Also Read: 2 Reasons Why the Stock & Cryptocurrency Market Crashed